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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Tenchusatsu who wrote (75963)	10/19/1999 12:49:00 AM
From: Jim McMannis	Respond to of 1575375

RE:"That's a pretty heavy hit. Sounds like a nice time to pick up some shares?"... Not me, I've just about had it with boxmakers...but if I had to buy one at the bottom it would be DELL. Like Paul suggested, this DRAM price escalaton will hurt all the boxmakers.

To: Tenchusatsu who wrote (75963)	10/19/1999 12:56:00 AM
From: Mani1	Read Replies (1) \| Respond to of 1575375

Tench Re <<That's a pretty heavy hit. Sounds like a nice time to pick up some shares?>> Dell's business model works great on declining component prices. The semi market has been EXTREMELY weak over the past few years. Extensive Fab built-up in Asia had resulted in low utilization rate and ever declining prices. Dell's model is based on this and Dell has benefited greatly from this. All indication are pointing to the end of this phenomenon. In theory Dell's model has no advantage in efficiency as far as component cost is concerned compare to HWP, CPQ and IBM. If the rise in DRAM and other component holds as it should, DELL will continue to get hurt. I find it a bit amusing that its evaluation has held like it has. IMO DELL is at most worth the trailing PE of 35. We could get there by next year. The semi equipment market may finally experience a sustained growth. Most stocks have already run up a bunch but deal (like COHU) can still be found. Mani