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

To: Chuzzlewit who wrote (147822)	11/22/1999 5:46:00 PM
From: kemble s. matter	Read Replies (1) \| Respond to of 176387

Hi!! RE: Certainly, IBM's operating efficiencies can use Dell's expertise. And certainly, Dell benefits from access to IBM's technology. But these goals can be achieved through partnerships. They do not require equity investments, and since the point of an equity investment is to generate a return on the cash invested, I simply don't see the point of a minority stake from IBM's perspective. Hey....I've heard that angle also...I really don't know the math here...Nothing unusual huh? :o) It was first mentioned in MM Tech Letter and came up in the conversation the other night...I brought it up only after they proposed: "what would IBM gain by letting this go?" For all I know there is no 30% stake....But, I still believe that something is in the making...A merger? A partnership? Hey....it's all what if...but, the facts remain that IBM still can't compete; is losing money; and I believe they realize that DELL is three laps ahead in a mile race...Catching and attempting to compete may be another futile effort financially...Afterall, didn't DELL just announce that they planned on taking their operating costs down even more? And, this new diagnostic testing is surely going to aid the company that doesn't have thousands to deal with service...I believe that DELL's rate of repair in house is something like 80%...and the industry standard for this is around 27%....Converge Net surely aids DELL in bidding on existing contracts and IMO what this all adds up to is more pressure against the service heavy industry that can't deliver the best hardware at the best cost...And, on time! Paul.....What would you do if you had the call at IBM? Thanks... Best, Kemble