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Technology Stocks : Dell Technologies Inc.
DELL 122.55+4.4%Nov 21 9:30 AM EST

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To: KENNETH R SANDERS who wrote (22077)11/19/1997 12:34:00 PM
From: jbn3  Read Replies (2) of 176387
 
KRS,

re:Why would DELL report 85 when they could hide 10 for next QTR.(or a rainy day) and still blow away the market with 75?

IMO, DELL's model makes it difficult to hide revenues. They are paid up front upon placement of the order, and they make every possible effort to get all open orders cleared and shipped each quarter. They should be recognizing revenues as they occur. They may have more leeway in recognizing costs. However, I am no expert, and would like to hear Paul Levy's response to your question.

As a shareholder, I would be uncomfortable with knowledge that a company was deliberately skewing earnings, as I don't see a major difference between doing that and reporting totally false earnings. In the case of DELL, I trust management's ability and integrity.

3.

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