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

To: JRI who wrote (139583)	8/17/1999 6:51:00 PM
From: Sam Bose	Respond to of 176387

John, Here's the full text of the interview with Michael Dell: Tuesday August 17, 6:19 pm Eastern Time INTERVIEW - Dell sees market share growth in Q3 HOUSTON, Aug 17 (Reuters) - Dell Computer Corp. (Nasdaq:DELL - news) chairman Michael Dell said on Tuesday he expects the company to widen its U.S. market share lead over Compaq Computer Corp. in the third quarter. ``We expect it to increase,' he told Reuters in a phone interview following release of Dell's second quarter earnings. ``It would be fairly unprecedented for their growth rate to accelerate and surpass ours,' Dell said, referring to Compaq. Recent figures from research firms Dataquest and IDC showed the two companies neck and neck in the U.S., but with Compaq holding onto a slight lead. But Dell has said in recent months that Dell Computer was taking sales away from troubled Compaq, which recently named a new chief executive, Michael Capellas, to replace the departed Eckhard Pfeiffer, and now leads the U.S. market. "If you take the data from IDC and Dataquest and overlay that with the actual data, we're number one in the second quarter in the U.S. ``They (IDC and Dataquest) were expecting what analysts expected, and we shipped more units than anyone expected. If you factor that in, we're number one,' he said. Dell's sales will be propelled by its leadership position in market sectors where demand for personal computers is expected to be brisk, he said. ``We think the second half is going to be very strong. We see strength from our government and institutional customers, as well as the small business marketplace,' Dell said. "We're well represented in the part of the market that is likely to experience very strong growth in the second half, so that gives us what we think is a solid outlook,' he said. Dell said that he did not see worries about Y2K issues affecting sales. Dell, which has begun offering computers priced below $1,000 to compete with low-price or ``free' computers offered by some competitors, said shipments to consumers were up 100 percent in the quarter. Dell said the strong consumer demand contributed to an increase in sales over the Internet to $30 million a day, up from $18 million a day in the last quarter. The company recently began offering its Dellnet.Com Internet service in the U.S., bundled with new computers. Dell would not say how many U.S. customers had signed up for the service, but he said: "It's off to a good start. ``It's very early days. We launched this a couple of weeks ago, so it's a little early to report a whole lot on it, but certainly there's a lot of interest in it,' he said. ``We expect to be aggregating a lot of users. Certainly, with our consumer growth, it would be hard not to,' Dell said. The company said notebook revenues were up 49 percent in the quarter, but Dell said that figure could have been better had there not been an industry-wide shortage of parts for notebook screens. ``Notebooks grew 40 percent, but it would have grown quite a bit faster if we had more supply (of parts),' he said. Dell said he could not predict when the supply squeeze would come to an end. Best Wishes, Sam

To: JRI who wrote (139583)	8/17/1999 11:45:00 PM
From: stockman_scott	Read Replies (2) \| Respond to of 176387

john: we did allright today considering we had 3 ANALysts (from firms other than Merrill Lynch) that issued cautionary comments on DELL. I just happened to check my First Call database in the last few minutes and I see that Salamon Smith Barney, ABN AMRO, and Warburg Dillon Read all warned investors about DELL going forward. They are not bullish on PC makers and all have Hold / Neutral ratings on DELL. I think they'll be proven wrong soon enough <VBG>.... BTW: On CNN they just interviewed BBRS's Dan Niles and he made some some VERY bullish comments on DELL. He claimed they improved on all three key operating metrics and he feels that DELL stock could easily appreciate 20-25% between now and October. At that time he says we'll have a better handle on whether there is any "Y2k Effect" at all. He didn't sound too worried about that. Hmmm......Roger McNamee of Integral Capital Partners was also just interviewed and DELL is his favorite PC maker. He claimed that "DELL's growth rate is significantly greater than HWPs and that is not trivial at all." I continue to feel there are many good reasons to be LONG on DELL for the LONG RUN. Some of the ANALysts are clearly confused and they'll look foolish soon enough. A few of the analysts are starting to get up to speed and realize the power of DELL's business model..!! Best Regards, Scott