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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: t2 who wrote (133587)	6/21/1999 1:49:00 AM
From: stockman_scott	Read Replies (1) \| Respond to of 176387

<<Thread: Is Dell ready for a merger or acquisition? The PE has come down quite a bit. >> tech2000: I don't think DELL will merge. That has not been part of their strategy. They prefer to partner and grow organically. Listen to Michael Dell carefully. Many have asked him this question over the years. IMO, if DELL makes an acquisition it would be a very strategic one -- that makes a lot of sense. It would not be an overwhelming purchase where there are a lot of integration issues. For example, I could see DELL investing in or buying Network Appliance (NTAP) -- a leader in the hyper-growth network attached storage field. On the other hand, DELL already has an alliance with them and is effectively accessing and distributing some of their technology. In regards to DELL and its valuation I tend to agree with what CS First Boston's Michael Kwatinetz said last week: <<Raising PC Hardware Industry Forecast. Reiterating Strong Buy on DELL. We have raised our 1999 WW PC unit forecast to 16.0% from 14.5%. Corporate technology purchases are likely to lead in the recovery. CSFB Economists and strategists forecast marked improvement in the global economy. We believe DELL will be a beneficiary of the improving global economy and DELL's solid outlook and more attractive P/E multiple causes us to reiterate our Strong Buy Rating. Annual EPS 1/00E 0.73 1/99 0.53>> ---------------------------------------------------------------------------------------------------- It sounds like he's right on target to me. DELL is looking very healthy and could have quite a run from here. By the way, CS First Boston has been one of the more accurate firms that have followed DELL in the last few years (unlike 'Pain-- in the Assets' Webber etc..)..!! Best Regards, Scott