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

To: Boplicity who wrote (138999)	8/12/1999 2:53:00 PM
From: stockman_scott	Respond to of 176387

<<It's a little surprising that the Merrill PC call still has traction. Forgive me, but I am playing the other side of that one. >> Greg: I totally agree that the ML call should have very little traction right now....I have their report on my desk as I type....here are a few quotes that may actually be true though ... Merrill Lynch 8/12/99 <<DELL: Long-term Buy We believe that DELL has significant growth opportunities in international markets, enterprise hardware, and with notebooks. We expect the company to grow units 56% in fiscal 2000 and by 46% in fiscal 2001. DELL has the opportunity to further expand into international markets. In 1998 DELL had roughly 8.4% of the worldwide market, 12.6% of the US market, and 8.2% of the European market. Interestingly, if the US, the UK, and Canada were eliminated, DELL's share of the remaining world market is only 3%, leaving it with plenty of room for expansion. We believe DELL also has an opportunity to increase its worldwide penetration of servers, workstations, and notebooks. DELL's worldwide share of servers is just over 10%, while its workstation share has grown to 13%. Currently enterprise hardware (servers, workstations, and storage) and notebooks account for 16% and 23% of overall sales, respectively. Given our projected growth rates for DELL, we believe that a 30% mix in each category is possible over the next several years.>> ----------------------------------------------------------------------------------------------- These comments from ML's report today are reasonable but they still get way to concerned about DELL's valuation in the near term. It's interesting that ML has consistently been pounding the table on EMC, IBM and SUNW.....they LOVE these companies and almost always have no major concerns in their reports on them . IMO, ML doesn't fully appreciate the power of DELL's business model going forward. GS, CS First Boston, Alex Brown and others do right now. Yesterday I quoted ING Barrings and how they were very encouraged about DELL's prospects and didn't just view them "as a PC maker." They were starting to look at the BIG picture and put some of the pieces of the puzzle together. They also believe that DELL's SUPERIOR execution deserves a premium valuation . I tend to agree. I continue to have DELL as one of my top 5 positions and sleep very well at night <G> !! Best Regards, Scott