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Technology Stocks : Dell Technologies Inc.

DELL 138.94

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Dec 5 9:30 AM EST

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To: Techie who wrote (48561)	6/22/1998 8:25:00 PM
From: Chuzzlewit	Read Replies (2) of 176387

Techie, you said According to what CPQ has said, the sub-1k is very profitable. There are two problems here. The first is how you define profits. Depending on what costs are absorbed and at what rate investment are amortized or depreciated estimates of profitability can vary widely. But the second problem is one of corporate credibility. Prior to the emergence of the sub-1k machine CPQ had gross margins of around 27%. Last quarter their margins had fallen to 18%. This is a hard pill to swallow if the profitability of the line were so great. Frankly, I don't believe there is much if any profit. Remember, Mason said things were just fine a few days before Pfeiffer issued an earnings warning. TTFN, CTC

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