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

To: Edwarda who wrote (147279)	11/12/1999 1:50:00 PM
From: Chuzzlewit	Read Replies (3) \| Respond to of 176387

Thank you Edwarda, Free cash flow really tells it all. And that is one of the main reasons Dell is such a powerhouse. Most growth companies do not generate sufficient cash to fund their growth -- particularly during hypergrowth periods. E-commerce is a notable exception because of cash flow created by virtually non-existent A/R and favorable terms from suppliers. In other words, cash is provided by an increase in A/P. But in more traditional businesses that kind of efficiency is almost unheard of. Dell's success is due not so much to low A/R as it is to excellent inventory management. But for this quarter it was Dell's Achilles' heel because Dell did not have the safety stocks to buffer the presumed temporary increase in DRAM prices. As I see it, the major hurdle (and opportunity) facing Dell is its entrance into new businesses where it can extend its superb business model. TTFN, CTC