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

To: Gabriel008 who wrote (145362)	10/20/1999 3:31:00 PM
From: Lee	Respond to of 176387

Hi Gabriel,..Re:.if they can achieve a minimum 15% sequential unit growth, maintain ASPs at parity with Q2 and somehow maintain GP's in the 21% area. Thanks for the reply. Last quarter, sequential EPS was 17.6%(basic), net income 16.7%, and revenue 10.9%. So maybe 15% unit growth in EPS is doable. As far as maintaining ASPs at parity, wouldn't that partly be dependant upon how much they've penetrated the consumer market in proportion with their corporate and high end products. At least according to MSFT, PC sales are going gangbusters this quarter so it wouldn't be far fetched to assume Dell got a bigger slice of that pie? But in the MSFT report, they mentioned increased pricing pressures due to intensified competition. Microsoft Corp (NasdaqNM:MSFT - news). profits jumped 30 per cent in its fiscal first quarter, thanks to strong demand for personal computers equipped with its Windows operating system and for the company's Office 2000 and other business software. Demand for new PCs has stayed strong, even as competition and pricing pressures among computer makers has intensified, Lewis said ca.dailynews.yahoo.com I can see where it may be possible to pass on the increased memory prices at costs for the remaining weeks of the quarter, but the orders they have to fill that were placed one or two weeks ago will have to eat the price increase? At any rate the flag was raised so the market won't be blindsided and if Dell pulls off earnings as estimated, then they'll be rewarded. Even companies that have beat reduced estimates have been rewarded. <g> Cheers, Lee