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Technology Stocks : Dell Technologies Inc.

DELL 129.24

+0.7%

Dec 26 9:30 AM EST

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To: Geoff Nunn who wrote (46490)	6/6/1998 2:59:00 AM
From: Chuzzlewit	Read Replies (1) of 176387

Geoff, perhaps predatory was a poor choice of words in the legal sense. However, I do mean to suggest that CPQ was trying to take market share from the Packard Bell type machines. And of course Compaq never sold below cost. However, the decision to manufacture cheap PC's with razor thin to non-existent margins raises serious questions as to the point behind the gambit. I guess we really had two separate events occur. One was the decision to enter the sub-zero market and take market share from retail rivals. The second was an inventory glut unrelated to sub-zeros, and the failure to properly forecast demand led to price-cutting separate and apart from the sub-zero problem. TTFN, CTC

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