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Technology Stocks : Dell Technologies Inc.

DELL 127.43

+4.0%

3:23 PM EST

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To: Eddie Kim who wrote (36659)	4/6/1998 12:18:00 AM
From: Meathead	Read Replies (2) of 176387

The fact the Dell has emerged stronger after every-single-price-war over the last decade is a result of their business model. Compaq's inventory is practically worthless anyway, that's why they are giving it away. Until they figure out how to permanently reduce DSI, they'll be selling trailing edge technology at a loss. Throw gross and net margins out the window for Compaq. Their consistency stinks. Good companies with predictable earnings patterns dont report ZERO profit for a quarter. As it stands now, Dell makes much more per box than Compaq. When the Q1 numbers come out, we can compare margins and everyone can brag about what a great management team and business Compaq has. One thing is almost for certain. For the next 4 quarters, we will continue to hear great news and get positive earnings surprises from Dell while CPQ struggles with constipation and assimilation problems. BTW, While CPQ used to have 27% GM, their OPEX is consistently 5% higher than Dell's. MEATHEAD

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