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

To: OLDTRADER who wrote (151237)	1/13/2000 10:44:00 AM
From: JRI	Read Replies (1) \| Respond to of 176387

J.P. Morgan has the right idea...although some concern for revenue this quarter....the "bigger picture" is that 2000 should be an excellent sales year for Dell, and set a $ 65 price target....(Kumar also has a $ 65 price target...I would agree with it...I am looking for mid-60's by year end 2000).. My thoughts: Dell (management) should frame the argument the same (as Morgan has).....If IBM, Sun, HP can hook their wagon to the "nebulous" internet theme (I mean nebulous, in the sense, that these companies are not showing huge gains in revenues/earnings/EPS as a result of hooking themselves to the "Net"..similiar (slightly better) results to the past,yet the market has inflated their values (as if) there is a lot more to come (good PR job, so far).... If these 3 can "sell" the future like this, then Dell should sell this coming year's results, and get the focus off of .01 or so in EPS for this quarter (for I think most expect that Dell will report .20 or .21 this quarter)..in the long run, that .01 is trivial...Dell should pound the table to make sure the market knows that...and I think the pounding should start NOW, vs. in mid-February...Dell should continue to strongly emphasize its UNDERVALUE vs. S&P 500 vs. growth....Dell should be sold as a safe, big cap growth play (not highflyer)...better play than IBM, HP, etc....Dell is not going to compete with the New, new economy stocks (EXDS, JDSU, BRCM)..they are playing a different game, altogether....up 10, down 8, etc.... I think Dell, the stock, got stuck a bit here (and the last year)...because it is no longer is the "high-flyer" category (Venkie has moved on...), but the folks who buy IBM, HP, etc......still think Dell trades at astronomical levels (P/E)...while, admittedly, those folks havent run numbers on Dell since 1997.....those are the dollars that Dell should be getting (and probably isn't)...Dell blows away HP, IBM....re: growth vs. price... And I stand by the theory <G> that Dell should (1) Present a comprehensive growth strategy OUTSIDE of core PC sales (servers, storage, "out-of-the box" PC revs...ISP, for example, other opportunities)...WHILE ALSO defending the "PC is dead" for IBM, HP...because they can't make money selling PC's.......but NOT FOR DELL....because DELL MAKES MONEY AND IS EATING THEIR LUNCH... Warning: Non-"PC" analogy coming......."The PC is dead"? IBM, HP are kind of like the guy at the party who, after hitting on the best-looking girl, and getting rejected......THEN goes around and tells everyone "She's not so hot"....meanwhile Dell is dancing with the girl..........she is still plenty hot... How 'bout them apples <G>...