One of the most CREDIBLE analysts speaks out on the DELL / IBM venture:
<<3/5/99 / CS First Boston / Michael Kwatinetz/ FY2000E: $1.45
DELL (Strong Buy Rating)
IBM Agreement is a Positive for DELL
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*Under terms of the 7 year, $16B agreement, DELL will have access to high capacity disk drives, network adapter cards, flat panel displays, high performance SRAM & custom chips.
*We believe this agreement could eventually broaden to include storage sub-systems and services.
*This agreement highlights DELL's position in the industry: it will source technology from any company where it gets great technology at a favorable cost.
*We believe this agreement will further extend DELL's push into the enterprise, as it gets cross-licensing of a broad portion of IBM's patent portfolio, needed increased componentry, and can leverage its strong customer base.
*DELL will also get an additional flat panel display provider at a time when that product is supply-constrained.>>
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As long as I have been invested in DELL, Kwatinetz has accurately covered this stock. I follow the CS First Boston reviews of DELL closely. They may not say as much as the other investment firms, but IMHO they mean more. The DELL-IBM agreement is truly a bold and visonary move by both companies. DELL will gain A LOT from this new relationship. It may take the skeptics a little while to realize this. Yet, soon enough they will have to admit it <ggg> .
DELL will continue to prove they are the next DELL.
Regards,
Scott |
