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

To: JRI who wrote (134027)	6/23/1999 11:36:00 AM
From: jim kelley	Read Replies (1) \| Respond to of 176387

John, It looks like DELL is continuing to enhance and execute the business plan. What is changing is not the road or the momentum of the company but the opinion and valuation of the stock relative to the other stocks. DELL was getting a 50% growth premium earlier this year. That premium was taken back when Revenue growth dropped to 38% from 50%. Companies like CSCO still have this type of growth premium. Of course, the internet stocks have a totally new formula for stock valuation. IMG, DELL's big upturn will begin after labor day as Q3 and Q4 are the strongest quarters of the year and marketshare gains will begin to accrue from CPQ's big fall. It takes at least 90 days for these contract wins (63% win rate) to begin to translate themselves into unit sales. By the third quarter, companies should know how much impact Y2K issues will have on sales. I think it will be a lot less than is feared. If that is the case, then sales will be better than many expect. Europe should be back big time by Q3 and Q4. Kumar seems to agree with with this timing.