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Technology Stocks : Dell Technologies Inc.

DELL 119.41

-2.7%

Nov 19 3:59 PM EST

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To: Skeeter Bug who wrote (105708)	2/28/1999 2:04:00 PM
From: Chuzzlewit	Read Replies (1) of 176387

Skeeter, I don't know that the 1% revenue growth figure is either preliminary or correct. Have you seen the report yourself? The 1% was reported in one news story. 3-5% was reported in two news stories. Neither of us actually knows what the report contains, and neither of knows what data the conclusions are based on. But there is another problem, and that is the point behind the exercise. I readily agree that PC revenues were weak this year. But is this portentous? I don't think so. I believe that the principal cause of the weakness in revenues was the deep recession in many parts of the world which not only curtailed demand, but deepened the price cuts of components. But this doe not necessarily mean that these trends will continue indefinitely. If you were to use a short-term change in revenue as a bell wether you might conclude that people were no longer eating given the drop in total food commodity prices (like grains and hogs) and that plastics and internal combustion engines were endangered products given the sttp drop in crude oil prices. Burke and his followers like to believe that technology is over rated. Perhaps he is right, but the data do not bear him out. If his argument is correct, then consumable commodity based industries are in much worse shape than technology. But you have also missed the major point behind my investment. There is no question that Dell is growing both revenues and unit sales at a very rapid rate, and is continuing to migrate towards higher margined items like lap tops and servers. I invest in Dell because I believe that this company will continue to grow at a very rapid pace over the next five years. Regardless of whether that growth comes as the result of simply increasing its market share (as Burke's argument would lead you to conclude), or through a combination of increasing market share through the shift from indirect channels to direct channels and the increasing world-wide demand, I think it is clear that Dell will eat the competition up. That's why I invest in Dell. Would you rather invest in oil? TTFN, CTC

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