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

To: JRI who wrote (143286)	9/30/1999 10:09:00 AM
From: OLDTRADER	Read Replies (1) \| Respond to of 176387

RE:DELL-On balance volume higher by almost 600000 here..Big boys buying-Williams % R shows excellent buy-point right here.wbm

To: JRI who wrote (143286)	9/30/1999 11:06:00 AM
From: rudedog	Respond to of 176387

john - excellent summation. There is little likelihood that DELL is doing something stupid. The question in my mind is really how does it play out over the next year, and are there in fact mitigating factors not yet made public, or is the announced agreement a description of just how far the parties have gotten to date? A related hardware deal would certainly make the pill easier to swallow but the key in my mind is that the IBM midrange business (AS400 and RS6000) represents a market space that is very profitable for them, and one can expect them to defend it aggressively. That is not a segment where IBM is in trouble. This is also a key growth market for DELL, and IBM has got to be concerned about how to keep DELL at bay. If they arrange for DELL to take some or all of their money-losing PC business but at the same time get leverage to help keep DELL from getting high end business at IBM's expense, that is good for IBM and probably bad for DELL. Knowing the economics of that market, it is hard for me to see it working out any other way near term.