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: J. D. Main who wrote (149482)	12/18/1999 9:26:00 AM
From: J. D. Main	Read Replies (1) \| Respond to of 176387

Pilgrims.....Amplifying info from The Tennessean-------> "At Dell, we are able to put together decisions very quickly." tennessean.com J.D.

To: J. D. Main who wrote (149482)	12/18/1999 2:37:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Very interesting indeed. From STK's 10-Q "On October 15, 1999, the Company announced that it has engaged Goldman, Sachs & Co. and McKinsey & Company to assist the Company in its on-going strategic analysis, evaluation, and consideration of various strategic alternatives. These strategic alternatives may include financial restructuring, acquisitions, divestitures, spin-offs, joint ventures, and business combinations that could include sales, mergers, or partnerships. The implementation of any strategic alternatives may have a significant impact on the Company's future reported financial results. The implementation of various strategic alternatives may result in significant one-time charges associated with the disposition of assets or recognition of liabilities. The implementation of various strategic alternatives may also require significant financing activities. There can be no assurances that the Company's analysis and implementation of strategic alternatives will be successful or that if additional financing is required to implement a strategy, that this financing can be completed on terms acceptable to the Company. The Company's operating results may be adversely affected while it completes the analysis and implementation of various strategic alternatives due to potential disruptions of customers, employees, suppliers and strategic partners." And later on in the 10-Q we learn that STK has great reliance on IBM, but that IBM has been cutting orders. It seems to me that there are two critical questions facing Dell. First, does STK have technology worth purchasing, and second, could Dell migrate its business model to STK? And finally, an important consideration. If Dell were to purchase STK it would need to make significant ongoing investments in R&D. Is Dell management willing to undertake such a fundamental change in their operating philosophy? TTFN, CTC