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

To: Chuzzlewit who wrote (147817)	11/22/1999 1:29:00 PM
From: jim kelley	Read Replies (1) \| Respond to of 176387

CTC, I am not sure how DELL would benefit in a merger with IBM. Would not IBM dilute DELL's strengths and efficiencies? The initial hype from such a situation might drive the stock price up but longer term I do not see any real benefit. Regards, Jim Kelley

To: Chuzzlewit who wrote (147817)	11/22/1999 2:35:00 PM
From: kemble s. matter	Read Replies (2) \| Respond to of 176387

Paul, Hi!!! RE: This doesn't make sense to me. Dell pays no dividends, so IBM would not realise any cash flow from the investment, and the cost of an investment in Dell would be prohibitive. The only way it would make sense would be for IBM to attempt a merger with Dell. Am I missing something here? Patrick and I were discussing how this would occur last week...How would you calculate IBM benefiting from acquiring a stake in DELL? This same possibility also came up in a discussion last Thursday evening when I attended a meeting at a neighbors' house ...The current layoffs were discussed...my two neighbors work there and one of their husbands currently is being transferred from manufacturing due to cut backs...Although no one had any "mathematical" reasons for this quote from Michael Murphy's Tech Letter..."IBM would acquire a 30% stake in DELL which immediately put the stock @60"....Yet both neighbors were quite sure that IBM would want something financial out of a possible partnership... With regards to the technology issue...Isn't DELL already agreeing to use IBM technology for the next seven years? The particulars in a further partnership is something I think I'll leave to the intelligent tech folks :o)... When they discussed some of the current woes of IBM the conversation rapidly turned to what many others have told me is inevitable..."IBM wishes they could do many of the things that DELL does....We can't believe they can sell $30B a day on the internet" (quickly reminded her it was $35B :o)... ) This quote opened up the discussion of what IBM should be doing....I mentioned that I believed IBM would want someone to run IBM since Lou Gerstner had appeared on a news broadcast awhile back and had mentioned he may perhaps wish to become involved with Education once he retires...Upon hearing him mention that word...the other rumors concerning IBM caused me to think of his replacement...This in turn led to some dreaming and during that "sleep" I remembered that speech that Michael had made on Managing HyperGrowth...I also recall a conversation or interview where Michael was "pinned down" into answering what he really DID fear? His reply was a rather simple answer...One that he expounds upon in his book BE DIRECT and of course in the Hyper Growth speech..."people...quality people".. .From the IBM perspective ...l keep Sig's interesting stat in the back of my head from when Sig did some research and showed that prior to Gertsner the stock did virtually nothing for a very long period of time...If being an IBM trustee I would expect that Lou's status of possible retirement should require some advanced planning...So, who do we go after? I think Michael is a possible huge stake in any deal...Wouldn't you agree he may "command a large premium" :o) What also has been mentioned up here is a possible confrontation between some of the IBMer's that don't wish to let go of the hardware business...It seems they feel they can resurrect the current situation by means other than a partnership with DELL...Paul, I would imagine that this is what Meathead was referring to when he mentioned he believed that if this occurs it would be a "walk don't run" deal....I believe it was you that had this conversation with him....I'm only adding my two cents when I tell you that so many folks have told and keep telling me IBM can't keep losing money in the hardware end ...Paul, virtually all of these folks work there.....Some have even told me that they have attempted to emulate DELL's model and haven't had the success that was expected...Current layoffs are in service and software...5% was mentioned...and the fear of further cutbacks exist....Whether this partnership happens soon is only speculation...IMO nobody will catch DELL or be able to compete...financially the others are ...what?...2x as expensive?...I was informed Thursday evening that IBM wishes they could do some the things DELL is currently doing and pursuing...I do believe there is a deal brewing...Financially both IBM and DELL will profit...the particulars are only conjecture here... Best, Kemble