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

To: Chuzzlewit who wrote (150360)	1/5/2000 4:52:00 PM
From: D.J.Smyth	Respond to of 176387

Chuzzelwit "As I pointed out any number of times, profit margins by themselves are meaningless. Profit has meaning, and profit is a function of sales and profit margin." how true. i belive you're saying that a company with a LOW pricing structure, a LOW profit margin of 20%, AND a SUPERIOR TIME TO MARKET MODEL, can still demonstrate HIGH earnings potential per share sales volume increases. Oppositely, a company with a HIGH pricing structure and a HIGH profit margin of 50% can still earn less per share due to, (a) POOR TIME TO MARKET MODEL and flat volume sales. The function, in the end, is in the (a) time to market model and (b) sales mixture, (c) and increasing volume sales. What Fortuna wants to find is HIGH increasing pricing structure, HIGH increasing sales, SUPER TIME TO MARKET MODEL and HIGH increasing profit margins (that will be the day). Hey. Good luck. From your previous posts we can determine that as sales, or volume increases, pricing structure is affected (lowered) and profit margins slightly drop, yet earnings continue to rise due to the offset in the overall increase in sales and superior time to market. Dell's "offset" with increased sales and market timing has always been more than enough to compensate for any divergence in profit margin relative to pricing structure. You'd think that Fortuna would more clearly attempt to define Dell's time to market model as ever improving and not stagnating - there are so many variables in this model upon which Dell can improve even yet. As importantly too is apparently the "Edamo effect" wherein Dell MUST continue to demonstrate it's vision and direction to the market. MD's book was about how change was the motivating factor at Dell. Sun, using this "edamo effect" has apparently capitalized on the notion that they are the leader in the internet technology sector. In truth, however, Dell is running a close second if not already nipping at Sun's heals. Sun is the company to beat now. Sun is priced for perfection. All Dell needs to do is take advantage of the opportunities before it. Yet the market believes in Sun's vision and blinks at Dell. Dell tends to run faster in second place than when it's out front anyway. When Dell's sales staff, per person per unit, is the best in the world, how do you increase the goal (to what can you compare or justify your increase in the goal)?