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

To: nolimitz who wrote (136889)	7/17/1999 12:04:00 PM
From: freeus	Read Replies (1) \| Respond to of 176387

Report from Austin: To All: Summary of Dell Annual Meeting: I'll put it on a couple of posts, it's long. Michael Dell began the meeting by outlining the four chief subjects he wished to address. They were: The PC industry, which he asserted is quite healthy. Dell's advantage because of cost of service and method of delivery Development of the enterprise market. Dell will continue to deliver exceptional shareholder value. Beginning with the last: In the last ten years the S&P 500 is up 325% Dell is up 53,482%, which is 165 times the S%P500. (Perhaps not much consolation for people who just joined this year at 55, but take a long term view if you can.) In the first half of 1999 Dell Computer Co. exhibited strong results but the share price was hurt by perceived weakness in the pc industry and global economic problems. The real important issue is not share price from day to day but how Dell will perform going forward. On that issue Dell is the cost leader: operation expenses as a % of sales are much lower than Compaq. Compaq's cost structure is double Dell's. Dell is the growth leader year over year in unit growth. Dell has consistently grown much more than the PC industry: it is gaining increasing market share...the PC industry growth without DELL is shrinking:those companies that are inefficient will not survive. Dell leads in profitability:two of the top 5 (top 5 are 44% of world share) are not profitable in our estimation. Industry health: Information technology continues to advance. IT spending is over 3% of gnp in the United States, around 3% in the United Kingdom, and less than 1% in China, with other major markets in between these %ages. The PC will expand in use and will be the center of the internet world. Hand held devices, computers in automobiles and other devices will not mean the demise of the PC, quite the opposite, these complement the PC and do not replace it. The advantage of the direct model is extending. Global sales are growing, from a few million Q1, 1998 to 600 million Q3 1999. 18 million a day volume with the fastest growing market as the corporate and public sector. Although Dell is #1 in the home and small business market in the U.S., they are greatly underpenetrating the largest world markets. When Dell has (what Michael sees as ) "Dell's share" their revenues will be greatly aided. Broadband: 10 million users in North America, but only 4.5 million in Asia and Japan, 2 million in Europe and 1 million in Latin America: there is and will be much growth going on here. More on the next one. Freeus