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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: Jim Patterson who wrote (35055)	3/20/1998 3:25:00 PM
From: Jacky AY	Read Replies (2) of 176387

DELL just adds HD, DRAM, Video, or a leather carrying case to maintain ASPs and Margins. Eventually that won't work any more. One point to add. That is, DELL can't set price on their own right. Price is strongly dependent on what their bigger competitors (CPQ, HWP, IBM) want to do. If Compaq wants to sell their inventory at <10% gross margin, there's no way DELL can maintain 20+% margin no matter how well they execute the BTO/JIT model. People thought Intel's price cut of P2-333 this morning was good news. Isn't that a confirming sign for weak demand of the high-end systems DELL solely depends on? Also, with Intel cutting price at such an alarming rate, wouldn't that cause concerns for plunging ASPs? How will DELL grow revenue fast enough to justify its skyrocketing P/E?

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