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Technology Stocks : Dell Technologies Inc.
DELL 126.59+0.1%Dec 22 3:59 PM EST
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To: Frank Ellis Morris who wrote (124495)5/13/1999 5:05:00 PM
From: Chuzzlewit  Read Replies (1) of 176387
 
Frank, I think your criticisms are misplaced and your fears are overblown First off, if you took the time to read Gerstner's comments, you would discover that he was talking about the real money being made in the net infrastrucutre -- ands he's right. We are witnessing bubble upon bubble in the internet. Companies like AMZN have yet to demonstrate that they can earn anything in profits. In fact, if you examine them closely their finances resemble Ponzi schemes.

Second, DELL is precisely in the middle of one of those companies that provides infrastructure (can you say server?) to the internet companies.

Finally, Dell is one of the few internet companies that will survive. Why? because Dell's product is a big ticket item (compared to books and CDs), the company maintains very few SKUs compared to AMZN, which translates into real savings in inventory handling. It is precisely the commodity nature of the product that gives Dell such a huge advantage over its competitors. The fact that it uses the internet for purchases from suppliers and sales to industrial customers ought to be proof of my contention.

Dell's business model is the envy of the street. To implicitly claim that it doesn't have respect is nonsense. I think that the principal thing keeping Dell back right now is the uncertainty concerning revenue growth. Last quarter there were many analysts claiming that Dell lost market share and that 1st quarter sales were going to be weak. The data coming from IDC suggest otherwise.

Keep cool!

TTFN,
CTC
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