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Technology Stocks : Dell Technologies Inc.

DELL 132.08

-0.8%

Dec 1 3:59 PM EST

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To: Mohan Marette who wrote (58419)	8/15/1998 10:08:00 PM
From: DWW II	of 176387

Mohan,......What comes around.....goes around......... As a Sr. VP of Procurement I can see real insight into your comments. I have felt for some time now that DELL may have a bit of a problem when the "component pricing" pendulum swings the other way. By this I mean (as you already understand) that when component prices begin to rise, DELL will be caught on the wrong side of the JIT equation. If, at the present time, DELL can capture cheaper component pricing sooner than their competitors because of their inventory turns, this allows them to enjoy larger margins and/or allows them to lower their prices to the consumer sooner. This allows them to control their margins very well. However, when component prices begin to rise, DELL will be the first to feel the impact of higher prices. This will squeeze their margins and could force them to raise their prices sooner than their competitors. On a related company.......I would hate to think what would happen to GTW if/when this scenario plays out. It may not. At-least not very soon. No Fear.....Long & Strong DELL.......DWW II

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