Dell Technologies Inc. Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc.

DELL 133.78

-0.1%

Nov 14 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Meathead who wrote (116105)	4/10/1999 10:12:00 PM
From: Chuzzlewit	Read Replies (1) of 176387

Meathead, money is made at the margin (incremental thinking). So long as the marginal revenues exceed marginal costs there is profit to be made. Averages are number games played by financial amateurs. Under the scenario I proposed the financial issue metric is an estimate of whether a purchased facility will generate returns in excess of the average cost of capital. It has little to do with the margin per system. The reality is that there are too many analysts who are incapable of rational economic thought when it comes to internal investment decisions. So given the scenario I outlined it is entirely possible that someone will start to holler about eroding margins and the price of the stock might temporarily tank. But the fact is that cash flow would be going up. The process I had in mind was gradualism. As it stand IBM is not making any money in the PC business. There needs to be a way for both companies to win. I am always open to alternate suggestions, so long as Dell gets the longer end of the stick. TTFN, CTC

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next