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

To: Calvin who wrote (141892)	9/10/1999 9:56:00 PM
From: Calvin	Respond to of 176387

PRUDENTIAL TECHNOLOGY TEAM RESEARCH OUTLOOK PC HARDWARE/PC CHANNEL/DATA STORAGE: PC demand in the corporate segment remained strong through August, although retail has begun to show some signs of weakness. We continue to recommend purchase of Dell (DELL), Gateway (GTW), and Compaq (CPQ) shares. During the week, Dell purchased ConvergeNet, a specialist in storage technology for SANs, for an estimated $345M. The move is expected to strengthen Dell?s internal storage team and accelerate its push into the enterprise storage arena. We view the transaction very favorably. Also during the week, Ingram Micro (IM) pre-announced third quarter earnings, and much like Tech Data (TECD) last week, cited margin pressures due to increased competition and Compaq?s DAP program, as well as reductions in vendor rebates and incentives. It is important to note that the company has seen strong demand in the quarter, particularly in the U.S. We believe PC channel stocks will continue to remain under near-term pressure. In the drive sector, we do not think the recent strength is indicative of any longer-term recovery, and we remain neutral on the sector until we see evidence of more sustainable and broad-based price stability. Prudential will be hosting a data storage tour in Silicon Valley from September 13-15. specialist in storage technology for SANs, for an estimated $345M. The move