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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (69244)	10/18/1999 11:51:00 PM
From: umbro	Read Replies (1) \| Respond to of 132070

Wasn't it just a week ago when Dell was lying, er, saying that there would be no impact? Hmmm, yes, I think you're referring to the "love in" 10 days ago? dailynews.yahoo.com Dell Sees Little Effect From Taiwan Quake AUSTIN, Texas (Reuters) - Dell Computer Corp. (Nasdaq:DELL - news) chairman Michael Dell said Thursday the company's financial performance should not be affected by an earthquake that knocked out industrial production in Taiwan last month. He said Taiwanese computer parts plants damaged in the September 21 temblor quickly resumed production and Dell, the world's second largest personal computer seller, had used its market muscle to assure a steady stream of computer chips. ''In terms of Q3 (third quarter) specifically, I think we're going to do okay...all of the things we've seen so far seem to be addressable through supplier leverage,'' Dell said at a meeting with analysts. ''We're going to squeeze out the little guys, and I think we're going to get the parts we need,'' he said. ''I feel very, very good about the long-term environment and I don't think the short-term environment is going to be one that has massive obstruction to our business.'' Looks like the little guys decided to squeeze back. got puts? <g>

To: Knighty Tin who wrote (69244)	10/19/1999 5:45:00 AM
From: valueminded	Read Replies (2) \| Respond to of 132070

Mike/All: Chronologically: October 7th, "they were managing the memory situation well" (news release in yahoo today) October 17th, "earnings will be impacted by higher than expected memory prices by up to 10%" (news release yesterday) Something seems screwwy. How can 1 week of 12 memory price miscalculation (if you believe that memory chips are the only reason for the earnings miss) result in a 10% drop in earnings. It would seem apparent to even the bluntest pencil that something else is going on here. I mean memory makes up what maybe 5-10% of the sale price of a dell computer & we all know that dell has one of the highest gross margins (20+%) and one of the highest average sales prices (~$2000) in the industry, so what gives here ? Love to here the answers to these questions in the conference call. thanks