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: Lee who wrote (150907)	1/10/2000 3:16:00 PM
From: JRI	Read Replies (2) \| Respond to of 176387

Hi Lee- Although I agree that Dell ALSO needs to emphasize areas of new growth (ie. storage, high-end servers, and other)....I believe that Dell has allowed others (in the last few months) to define PCs and PC growth...one would think that PC growth is flat or worse given the reports (vs. the current 15% unit growth for several years to come), and that cell phones are going to replace (and not supplement) PCs.. Dell core business is STILL PCs...and Dell, IMO, needs to "get its message across" that, although it is not a profitable growth business for most...it CAN be, for the most efficient, nimble player(s)...and that the further consolidation of the industry is going to have some terrific (positive) aspects for Dell... I think Chuzz has pointed out something very significant...Dell is building a cash hoarde...that is not current being well-utilized (certainly nowhere close to Dell's invested capital rate of return).......I would say that this year is THE year that Dell may want to do something (bigger).......growth thru acquisition.......I wonder, though, if Dell is waiting until the Handheld market reaches a more profitable inflection pt....to jump in......Handspring (as an acquisition candidate) comes to mind... Another radical solution, which I always thought would be interesting......would be an all-stock deal for Gateway....and Dell would use Gateway as its "low/middle" consumer brand....Dell could keep the Gateway stores....would get the relationship with AOL Time Warner......and add Dell's brand..and upsell customers....and, as a defensive measure, it would eliminate the only other successful direct competitor......Gateway has done a great job of figuring out what low/middle end customers want.....better than Dell......However, I don't think Ted Waitt and MD have ever gotten along..so I see this as a real long-shot...but hey, if Ted Turner and Gerry Levin can merger???? Storage: NTAP would be a possible candidate there...interesting idea....If not (no acquisition)...Dell needs to move A LOT closer to EMC if they really want to see growth in storage (and not just nibbling at the corners)....for EMC is pounding thru the storage jungle like the gorilla that it is...Storage is increasing being driven by software, and if Dell is not able the acquire this...it is likely better to partner with EMC...than try to create it (itself).... Re: Optics, etc...I agree that the growth is going to be phenomenal..and there are going to be a lot of winners...but there are also going to be some losers.......from what I've seen, JDSU looks as strong (company/stock) as any....but their stock market caps (I'm talking about all of them)..given that some won't make it (remember PC biz in 1984?)..is a bit scary..if you make the wrong bet...it may not pay off.....the right one, however, is minting money.... Right now, the market is rewarding all those guys...so everyone looks like a genius, at present.....We'll see how long that lasts...