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Technology Stocks : Dell Technologies Inc.

DELL 126.86

+0.4%

2:45 PM EST

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To: Techie who wrote (48040)	6/17/1998 10:52:00 PM
From: Meathead	Read Replies (3) of 176387

Techie, you made a few typos. I cleaned them up for you. A savory Preview of things to come.... Let's imagine what the analysts would say after the next report: Balance sheet remained strong, improving in absolute terms, with inventory and receivables down sequentially. Inventory reduced to 7 days with receivables at 27 days. The strong asset management allowed gross margins to expand, boosted by the effects of the higher sales levels. Unit shipments were up 9% sequentially, which management attributed to lack of competition in the direct channel. However, more competitive pricing may have led to higher unit gains, but likely at the expense of Compaq and others. Perhaps overly optimistic, but the better than expected Q2 units together with the upbeat outlook will likely contribute to keeping investors pumping money into this stock for both the near and long term. Pricing was also somewhat of a positive surprise with blended ASP's increasing about 4% sequentially. At least a portion of the ASP increase could be attributed to a surge in server and workstation sales. Desktop ASP's declined about $45 seq., but well above average unit cost declines which fell $411 sequentially, partially due to lower component costs and partly due to improved asset management. The lower costs allowed desktop gross income per unit to expand. We anticipate further improvement going forward at accelerating rates. We have raised our estimates for the third quarter of 1998 to .54/shr and to 3.36/shr for 1999.... We have increased our unit and ASP assumption. No need to thank me... MEATHEAD

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