DELL prices appear to holding firm.
DELL's internet site provides pricing info. to customers on the purchase of PCs and info. for investors on PC prices and components (disk drive prices, e.g.). I have used the site as an extra research tool successfully for a couple of years now. On 1/21/98 I purchased a PII 233 computer from DELL's web site. I just configured an identical machine moments ago. My price on 1/21 was $2,498 ... identical machine today is $2,529. In a supposed price slashing environment, DELL's prices have actually increased a bit over the past 2 1/2 months. If my economics professors were correct, the laws of supply and demand should also apply to DELL ... if prices were hurting DELL sales, DELL's price would be dropping. Machine components are listed below for anyone interested.
I lightened up on DELL in anticipation of DELL getting dragged down by CPQ's blunders, but am waiting to pounce on any significant drops. Dan Niles at R&S has not historically been a bozo analyst, so I expect a drop in DELL. And you can bet CPQ will absolutely butcher their quarter, try to disguise it somewhat w/ one-time charges, and provide some sort of forward spin designed to worry investors a bit about DELL. I really believe DELL is still nailing it, and a great buying oppty. may be around the corner. But when ... do we wait for CPQ's disaster qtr., where DELL may retreat in sympathy, or do we pounce on weakness before DELL analyst meeting, or wait for DELL to comfort investors w/ analyst presentation? I will probably wait for CPQ qtr., but I think "long" investors are approaching a time to load up. Good luck to all, next several weeks might be pretty interesting!
Glenn
system bought: 233 PII, 64MB ram (1 DIMM), 8.4GB HD, USRX 33/56 modem, Altec Lansing 495 speakers, 1000TX 17" monitor, performance keyboard, integrated wavetable sound, 4MB video card, 3 year on-site warranty. |
