To Judith, jbn3, VENKIE, and Robert Hummer, thanks very much for your messages. I thought I would try to respond to all of you with this one message.
Sorry about the link to that article on the CPQ-DEC merger being to only the front page of upside.com, I will re-post the link to the specific article (thanks for correcting me on this jbn3).
upside.com
Here are a few thoughts I have about Dell:
I like the attention to detail that Dell has. For example, the Dell PC's that I have used are extremely quiet, and come with a default keyboard that is also quiet. In contrast, at least one model of the Micron PC's, for example, sounds like a small vacuum cleaner to me. I also like the excellent manuals Dell has and the excellent commercials that I have seen on TV (they seem well thought out, stylish, and entertaining). Everything about Dell seems to reflect excellent management.
The is a current issue of an internet or PC magazine in which the Motley Fools are interviewed. In the article I recall that David and Tom Gardner point out that a big part of the internet phenomenon is about getting rid of the "middlemen". I think that Dell is really positioned well for further growth, and that the wave that Dell is riding is a big one. I could go on about other obvious plusses for Dell, but instead let me mention what I think is the major challenge to Dell right now.
I think the major challenge right now is the trend to lower priced PC's (and the current lack of strong need for fast PCs due to bandwidth and software issues to which it is related). My two cents worth is that this could slow revenue growth, but even in this arena Dell should be able to emerge the champion after some adjustment period. Furthermore, I view this as a short term problem since high-speed modems are on the horizon, and since new software such as Windows 98 is coming out soon (if the past is any guide it should require more horsepower to run). I guess the biggest problem I have right now is that Dell looks too good to me (as a long-term investment), and I keep wondering what I might be missing. (The biggest negative I can find is just the valuation of the stock.) Does anyone know what it is that I should be worrying about that I am missing?
Best wishes to all,
John
PS - Judith, no relation to the Texas governor |
