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Technology Stocks : Dell Technologies Inc.

DELL 133.20

+5.7%

Nov 26 3:59 PM EST

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To: Meathead who wrote (25681)	12/18/1997 9:24:00 PM
From: Jim Patterson	Read Replies (4) of 176387

The 70% stock drop was not due to the price war however. Dell had just brought in John Medica (ex. powerbook director of engineering) from Apple to lead the Dell notebook line. His first order of business was to review Dell's roadmap. He took one look and said "this is junk, scrap everything and start over". So they took a $70M writeoff and had essentially no EPS for the year The fact that M.Dell Admits that he did not cut prices because he did not want to compete on a price basis. He also thought that his company was growing to fast and he thought this might slow things just enough for management to catch up. Much to his supprise, His stock fell 70% and the company almost got into serious financial trouble. The move into retail stores was another hugh financial mistake. Now If you want to think that the stock went down because of a write off, Have a nice day. Oh yea, The stock price decline also revieled the agressive option / hedging stratagy that DELL still has not stoped. Jim

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