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

To: stockman_scott who wrote (143525)	10/1/1999 1:26:00 PM
From: jim kelley	Read Replies (1) \| Respond to of 176387

Re:Niles on CNBC The thrust of Niles argument seems to be that the earthquake in Japan has interrupted supplies of some PC components and that DELL because of its JIT inventory would be forced to compete for the affected components in the spot market. He said too bad and in 3 to 6 months things will stabilize. He is expecting DELL's margins to get squeezed between higher component costs and lower ASP. DELL should be reporting on this matter next week if indeed what Niles says is true. Why this would affect DELL more than GTW, MUEI and others is not completely clear. However, the argument seems to be that DELLS business is 70% corporate and those contracts are fixed price contracts so that if DELL has to pay higher prices for components it will not be able to pass along the cost increases. The other direct companies can pass along price increases because their business is more SOHO and consumer proportionately. Niles did not seem to be perfectly confident but says he has good visibility into the supply chain and almost every component is affected. He is not able to figure exactly what the component substitutions DELL may be able to find and he does not know he exact constitution of DELL's corporate and government contracts. To clear these Taiwan supply issues up, DELL needs to clarify the situation for its stockholders.

To: stockman_scott who wrote (143525)	10/2/1999 2:19:00 PM
From: T L Comiskey	Read Replies (2) \| Respond to of 176387

Scott....<DELL will rise again (yet, maybe not as soon as many of us would like it to <G>.............Owings Mills, Maryland, Oct. 1 (Bloomberg) -- The rising stars in the technology industry will be companies that help others convert into an Internet-dependent society, three analysts said on 'Wall Street Week With Louis Rukeyser.' 'Technology is not about the computer, but what happens when we connect all the computers and the impact on society it has,' Kevin Landis, portfolio manager at Firsthand Technology Funds, said on the Public Broadcasting System program. Landis is picking stocks that will move on the market's appetite for faster computer and telecommunications systems. He recommends Qualcomm Inc., developer of the world's second-most popular cell-phone technology; Concord Communications Inc., which makes software that spots bugs in computer networks; and TriQuint Semiconductor Inc., which makes high-speed telecommunications chips. At the same time, he says, he's staying away from personal- computer makers, despite profits that some investors have found in that sector. 'That market is getting a lot less sweet,' he said. Other guests said PC makers need to push their focus to Internet infrastructure and providing consumer services to remain competitive as product prices drop. 'The model for PC manufacturing is shifting,' said Jay Hoag, general partner at Technology Crossover Ventures. Hoag's selections center on electronic-commerce and include Internet consulting firm Viant Corp., car-shopping service Autoweb.com Inc. and lender Mortgage.com Inc. He said those companies provide traditional services over the Web, boosting their efficiency. John Doerr, a partner at Kleiner, Perkins, Caufield & Byers, said there's still a lot of growth ahead for larger, better-known tech companies as well. Despite conflicting opinions about whether Amazon.com Inc. will ever turn a profit, he thinks the biggest Internet retailer will perform well long-term. Doerr refuted comments made last week by Steven Ballmer, president of another company that he recommends, Microsoft Corp. Ballmer said at a conference that technology stocks, including Microsoft, were overvalued. 'I think he was wrong. It's still very, very early in this market of opportunity,' Doerr said. After recent weeks of interest-rate concern and worries over profits from companies in most sectors, the guests agreed the 'mood swings' in the market are going to continue. Investors looking for a steady path will find it tough to find. Said Landis: 'Get comfortable being uncomfortable.'