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

To: Mani1 who wrote (145958)	10/28/1999 5:24:00 AM
From: Bruce Brown	Respond to of 176387

Why did Micron say that prices would be going down for DRAM? Nevertheless, if RDRAM becomes the next standard at least for Dell - what do you see that change creating in the market? I mentioned the earthquake because it has been used as a short term damper, coupled with the DRAM pricing/supply issues. Do you not feel that production will be ramped up in the DRAM business, or do you feel that a cartel is in place and the OEM's battle cry not to stand for such a pricing cartel will pan out? I will spot you that Intel, being that it is going through a major transition, will bleed a little longer before turning the corner. However, in the long term as it comes to high technology investing I still have to believe that it is a hold because their entry into the DPS chip business with their recent acquisition and posturing for the future look good to me at this point. I will have to wait to see if these fruits to end up tasting good, but if I'm correct - I certainly feel Intel will continue to outperform the market. Historical performance to date, Intel has not returned as much as any other Gorilla making it perhaps even more conservative. I would much rather have my money in CSCO, MSFT, QCOM, SEBL, ITWO and GMST in terms of Gorillas. However, Intel is the stock to own in the microprocessor business. However, Microsoft will continue to offer market beating returns. Perhaps, on the whole, they have morphed into more of a King rather than their OS Gorilla status in their Internet foray, but as the numbers roll in quarter over quarter and they continue to beat the Foolish Five criteria I list below, I want a piece of the action. Why? These criteria point out excellent business for investment: 1. Sales growth in excess of 15% over the previous year. 2. Gross margins above 50% (and holding steady or rising). 3. Cash savings that amount to 5 times more than long-term debt. 4. Inventory that is not growing as fast as sales over the past year. 5. Receivables that are not growing as fast as sales over the past year. Microsoft passes with flying colors. As long as they pass, I want to be along for the ride. BB