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

To: stockman_scott who wrote (140567)	8/26/1999 4:35:00 AM
From: Bruce Brown	Read Replies (2) \| Respond to of 176387

>DELL is keying in on the important issues and simplifying the PC and web experience for consumers. I am glad that DELL is addressing size, style AND connectivity. I believe that DELL is seeking to change the rules of the game in the consumer space (yet in a very profitable way). The clues have been uttered for many months if not quarters. Dell himself said something akin to this: "The iMac is a wake up call to the computer industry....". It's no secret that USB as the standard for the future of the industry began large acceptance by third party vendors last year. Management's statements that they would be entering the consumer/web appliance type space in the fall was well telegraphed. Michael Dell has always stated his goals were to 'make it all simple for the end user' as well as a lead a mission for the computer industry to get the support costs down per seat in the business world. Yet, types like Niles and the 'death of the industry' tone droned on and on as the financial industry churned the shares down and fogged over the issue with 'doom'. I'm not saying they didn't have reasons for valid concern. It is interesting (and nice) to see the crow being eaten and the door opening statements from those same churners now that fall (as in season) is approaching and they are 'back on board'. Sure, they are just doing their 'job', but how many clients 'missed out' on this years 25 - 30 percent gain in Dell share price because of it? One would like to think in a perfect world that Niles had all of his BancBoston/RS clients out of the stock before he made his revenue shortfall call back in February. In a more perfect world, those clients would have been demanded to purchase Dell shares in the mid 30's to boost their gains. Those of you that follow Niles will know that he churned and warned to get the heck out of Intel earlier this summer before the stock took a 30+ point upswing. Which call is Niles more known for now? That's a whole other issue and it is obvious I am no fan of Niles, but I have my own investments to take care of and should just let it lie. Nevertheless, as I'm sure has been hashed and rehashed on this board - the February 'loss of faith' became a self-fulfilling prophecy. As a long time holder of Dell shares (almost 5 years now), I would have to say that part of what kept my 'faith' alive over the past 5 years was getting inside of what the 'other guys' were doing: IBM, Apple, HP, Micron, Acer, PBell, Siemens, Gateway, eMachines, Compaq, Sony and others. Not only with the product, but with the business model and the numbers for running that business model. The obvious is that the Dell business model is such an innovative 'thing' and such a different animal that it has nearly nothing to do with computers at all. It is such a unique animal, that Dell doesn't have to be the initial innovator (such as the iMac or first to embrace USB) to succeed. The business model (animal) makes up for it in spades once they do make the decision. Dell himself has said, over the years, that his customers don't want to be in the 'innovative lead'. He wisely - and that is key - wisely listened to what his customers said. Sure, within that sage wisdom lies plenty of innovation. However, the business model that Dell owns is the real investment we have here. Computers just happen to be part of the products they run through that model. As usual, I've said nothing new or astounding. I just wanted to confirm some things I had read in the previous few hundred excellent posts. I especially wanted to commend the astute comments that one poster stated in her excitement about the next 5 years for Dell look even better than the previous 5 years. Once again, Dell management has telegraphed that exact line quite well to the shareholders. Based on the business model 'animal' and the past history of Dell's excellent management - do we have any reason not to believe them? BB - staying long for the next 5 years