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Technology Stocks : Dell Technologies Inc.

DELL 133.20

+5.7%

3:59 PM EST

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To: Jim Patterson who wrote (27131)	1/8/1998 5:51:00 PM
From: Francois H. Gaston	Read Replies (2) of 176387

Yes, I am new on this board. I am a Dell Bear and a CPQ bull. I can see that CPQ sells and sells "bezillions" of PCs in my neighborhood and many customers come with a piece of paper from a friend who told them to buy that specific low priced Compaq, on sale. I did my Peter Lynch bit and saw that Compaqs sell like crazy, locally and that our schools are leaving Apple Power Macs for cheap PCs. I owned 3 Gateways at home over 4 years and all ended up having a problem like the 3 Gateways I have used at work. Gateways left the lower end market to "compete" with the big guys. So I switched to Compaq: own 3 now at home and two are the black presarios: keyboard is too black and they are noisy: but boy! what a deal. NO breakdown. I will keep upgrading on a yearly basis... with sub 1000 $ PCs... Instead of buying one at 2000$. I don't need the whistles. I buys second hand cars... and brand new, but cheap, PCs. Compaq got my business. Dell never could entice me with their high end PCs. Mr. Dell has not responded well to the sub 1000$ PC war which CPQ started... and which Compaq is winning hands down(IMHO) (41% of average customer are buying sub 1000$ PCs and guess what: my guess is that CPQ will get half of that (a guess here). Market share is the name of the game and Pfeiffer (CPQ CEO) said that the margin on those is very good. DELL has not reacted to this war. Mr. DELL spent his time criticizing Mr. Job. That is how I see it. Oh! Yes! The PE for DELL is about 37 and CPQ 28... both expensive. When one of them will miss their QTR target, you could see a 40% drop... When one of them will see shrinking in their earnings.... They could look like APM with a PE of about 3 now! For Dell that means shares prices down to about 6-7$. I am just teasing here but you get the idea. I am sticking with my Dell Shorts. I don't see a good run up with this high PE in a very unstable market. If the share price goes up before earnings: they also could be a sell off on "good news". Long and shorts beware. Very choppy time ahead. Not trying to be mean. Just expressing my opinion. I receive no benefit in seeing somebody loose money. None. Gaston

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