Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Ian@SI who wrote (146626)	11/5/1999 6:30:00 PM
From: BBG	Read Replies (1) \| Respond to of 176387

Judge says MSFT has monopoly power... Will be interesting to see how this affects the market on Monday.... BBG

To: Ian@SI who wrote (146626)	11/5/1999 9:16:00 PM
From: Alohal	Read Replies (1) \| Respond to of 176387

Aloha Ian! Re; "Yes the others are catching up in terms of P/E. But not in terms of growth rate, net margin or ROIC or any other ratio that matters." No question, but right now the street is preoccupied and will need to be hit over the head (ala strong earnings)to move the stock price. Mo Mo's see 10-25%/day gains in small tech stocks and aren't interested (for now) in 30-40%/yr returns (my guesstimate about Dell's stock price appreciation going forward). There is plenty of room for both in my portfolio and my dell holdings allow me to sleep soundly. Cheers Alohal

To: Ian@SI who wrote (146626)	11/7/1999 2:26:00 PM
From: Chuzzlewit	Read Replies (4) \| Respond to of 176387

Ian, yours was one of the more incisive posts I have seen on this thread in some time. The market is manic-depressive, but over the long run sanity prevails. Perhaps the problem is that too many investors were caught up in the hype when Dell ran up from the low 30's to $55 last year. The things that spell long term success for the company remain, as you pointed out, ... growth rate, net margin or ROIC or any other ratio that matters. Finally, let me point out that box making is a fiercely competitive industry, and Dell has the best business model in the group, and so I do not fear the likes of CPQ or IBM in this niche. What I do fear is the slowing growth rate due to Dell ever-increasing market share. Recent moves by Dell indicate that management, too, is aware of this potentiality and is addressing the issue. I believe that recent weakness in Dell may be a result of not only the comment by Meredith concerning short-term cost pressures (DRAM pricing), but also a "show me" attitude taken by investors regarding Dell's entrance into new businesses. TTFN, CTC