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

To: jim kelley who wrote (143555)	10/1/1999 1:33:00 PM
From: D.J.Smyth	Read Replies (1) \| Respond to of 176387

jim "DELLS business is 70% corporate and those contracts are fixed price contracts so that if DELL has to pay higher prices for components" what Niles doesn't say is that Dell also has many fixed component price contracts (not just fixed sales contracts) and guaranteed first delivery due to the large orders they place. the spot market purchases would affect only demand that is occurring BEYOND current growth projections, i.e., Dell expected by some to grow 8% sequentially, yet they're experiencing 12% - the addtl 4% unexpected growth could be spot market affected. but the addtl. growth doesn't affect concurrent expected earnings - even though the margin on the addtl unexpected growth is lower, the earnings from that growth will still add to expectations.