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

To: Chuzzlewit who wrote (136925)	7/17/1999 12:40:00 PM
From: George Wave	Read Replies (1) \| Respond to of 176387

Chuzzlewit, Thank you for your response the other day re: reasonable expectations for Dell's growth. It took me a little while to understand your calculations, but they now make sense to me (and my brain given a much needed mathematical exercise!). After Friday's meeting, I wonder if you would prognosticate on revenue and EPS growth. Would you change any of your assumed values? Re: GTW/CPQ, your comment regarding a clash of wills is for me the crux of the biscuit in this potential combination. We're talking about two VASTLY different corporate cultures, which are in essence, a reflection of Rosen and Waite. If that hurdle were to be overcome, I would watch this situation ever so carefully, IMHO. Best regards, George

To: Chuzzlewit who wrote (136925)	7/17/1999 4:21:00 PM
From: stockman_scott	Respond to of 176387

<<And I see no financial impediment to CPQ acquiring GTW. If there is an impediment it is more along the lines of a clash of wills (Waite vs. Rosen) than anything else.>> Chuzz: Wise comments....IMO the cultural clash is BIGGER than most folks realize and it will most likely prevent a combination of these companies. I also feel that DELL's business model will continue to be superior to all other players in the computing and enterprise markets. DELL's cost structure is currently about 1/2 of CPQ's and we know that DELL's commitment to constant and never ending improvement is tough to keep up with <G>. DELL's growth has slowed BUT the company will continue to be the strongest and most nimble player in the hardware space. Just my views. I also feel that management is focussed on what's important. No major worries here. Best Regards, Scott

To: Chuzzlewit who wrote (136925)	7/18/1999 8:22:00 AM
From: jttmab	Read Replies (2) \| Respond to of 176387

Chuzz, Thanks for rephrasing your opinion on the CPQ retail brand point. I misunderstood your earlier post; we're now in complete agreement. The only question I have remaining is with respect to DELL's cash position of $4B; with an ROIC of 189%...cash seems such a waste. Share buyback; new facilities; new ventures; acquisitions...what to do? Share buybacks and new facilities are only partial answer as DELL grows, but there are physical limitations to how fast one could build new facilities. New ventures such as auction sites etc..are one avenue and if successful could result in an even higher ROIC going forward since the price of entry is low. Acquisitions are usually dilutive in the near term and would lower the ROIC substantially....a major business model issue [valuation] for DELL so I don't see DELL pursuing the acquisition approach. Watch next week...DELL will prove me wrong <g>. Regards, Jim