<<Who do you trust more: Michael, a freshman dropout from UT with a 16 years experience, piloting the fastest growing company or Dan Niles a theoretical overeducated Stanford graduate?>>
Paul: That's an EASY question to answer. I would TRUST Michael Dell and his team any day. If I was going to consider an analyst's comments, I would look at their track record first.
Right now I am looking at a new Gerard Klauer Mattison report. The analyst, Lou Mazzacchelli, has been on target with his assessment of DELL for quite a while now. Here are highlights of what he had to say on Friday, March 5th:
<<DELL Computer (Buy Rating)
EPS Targets 1/99A 1/00E 1/01E
........$1.05 .....$1.50 .....$2.06
OEM Pact with IBM, Strategic Opportunities Remain
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-We believe that today's announcement is a positive for DELL long-term.
-Broad $16B, 7-10 year OEM agreement includes storage devices, microelectronics, networking and display technologies. We believe DELL will make immediate use of IBM disk drives, memory components and flat-panel displays. This could provide DELL with a technology lead over its competition.
-DELL's best strategic opportunities with IBM remain unrealized. These include IBM becoming DELL's primary services partner, and DELL manufacturing PCs for IBM. The recent agreement does not preclude either scenario.
-DELL's OEM deal with IBM has the potential to increase its storage business growth rate by providing leading-edge technology that is more likely to be compatible with IBM Enterprise solutions than competing offerings. This is a positive for DELL and would be enhanced by a broad-reaching services agreement between DELL and IBM (which would remove what we believe to be a major strategic impediment to effective long-term competition with Compaq in enterprise accounts).>>
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I LOVE those comments about the fast growing storage market.!!! DELL is seeking to become a MAJOR player in this lucrative field. Just check out Tom Meredith's quote in the latest BusinessWeek cover story on EMC <ggg> ...
IMHO, DELL continues to prove that they are the next DELL.
Regards,
Scott |
