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


To: kemble s. matter who wrote (152524)1/28/2000 10:10:00 PM
From: Patrick E.McDaniel  Respond to of 176387
 
~~~OT~~~ Senator Makes Reno Cry

abcnews.go.com

:o)



To: kemble s. matter who wrote (152524)1/29/2000 12:08:00 AM
From: calgal  Read Replies (2) | Respond to of 176387
 
Hi Kemble! It is interesting that Fortuna reiterated his near-term neutral rating on CPQ today, after they met with analysts. Yesterday, he raised his near-term rating on Dell from neutral to buy, with a 12-month price target of $52. Sounds like he is placing his bet on Dell for continued success in being direct! I am glad that he and Niles call some shots accurately. Better late than never! :)Leigh

abcnews.go.com

Compaq Details its Direct-Sales Hopes

Joe Wilcox
CNET News.com

1/28/2000
Compaq Computer told financial analysts today that it plans to start selling more of its computers directly to customers, and this time the company says it means it.
Speaking to financial analysts in Houston today, chief executive Michael Capellas said that approximately 70 percent of its PCs for the commercial market will be sold directly to customers--rather than through distributors or dealers--by the end of the year. Currently, 85 percent of its PCs go through distribution. Overall, Compaq wants to see 40 percent of its systems sold directly.

The move to sell computers in the same way that rival Dell Computer uses will cut costs and will be helped by the purchase late last year of Inacom's distribution assets. Still, analysts who have heard Compaq talk about direct sales before say that the goal could be tough to meet.

"Anyone who sells indirect loses money today," Compaq senior vice president Michael Winkler said at the meeting, according to Bloomberg. "Anyone who sells direct makes money."

Compaq executives briefed financial analysts for about four hours today, setting the PC maker's direct strategy and a goal of about 15 percent growth for 2000. Compaq also promised it would bring its commercial PC division to profitability by the second half of the year.

Compaq on Tuesday revealed that its commercial PC division, which made up about 31 percent of revenue, lost $79 million during the fourth quarter. That compares to a wider loss of $157 million for the third quarter, in which Technology Business Research analyst Lindy Lesperance estimated Compaq lost more than 6 percent on every commercial PC it sold.

Winkler said the indirect sales method takes about 15 percent revenue from each machine vs. 2 percent for direct.

The company is also betting big on iPaq, its simplified business PC that started shipping this week.

"It is a dogfight, and iPaq will certainly help us in that regard both as an innovative product and increased margins," Winkler told financial analysts on Tuesday. "Portables are becoming an increasing portion of our mix, which bring in increased margins. And as we increase the direct content of our business, that also increases our margins."

Today's news had little impact on Compaq shares in late-day trading. At 1 p.m. PST, the close of regular trading, Compaq's stock was down 2.68 percent to $27.79.

Merrill Lynch analyst Steven Fortuna in a short written statement expressed some concern Compaq could achieve its direct goals. Fortuna reiterated his near-term "neutral" and long-term "accumulate" on Compaq stock.

Jeff Matthews, general partner in Ram Partners, a Greenwich, Conn., investment firm, said he was not surprised by Compaq's posturing.

"Compaq's going direct is as inevitable as the sun rising tomorrow," he said.

Margins have greatly concerned financial analysts. Ashok Kumar, an analyst with US Bancorp Piper Jaffray, said Compaq must return its operating margins back to the 8 percent range from about 4 percent today.

Gross margins during the fourth quarter declined about 1.1 points to 22.2 percent.

"Our $43.3 billion revenue estimate for 2000 is about 13 percent growth vs. (the) company goal of 15 percent," wrote James Poyner, an analyst at C.E. Unterberg, Towbin, in a report he issued on the analyst meeting. He warned that his 18 cents a share estimate for the first quarter has about a penny risk due to an anticipated "$50 million to $60 million" charge.

Capellas on Tuesday told financial analysts that Compaq expects in the first quarter to take a $60 million to $75 million hit associated with ending Windows 2000 development on the Alpha processor. The purchase of facilities from Inacom would also affect the quarter's results, but Capellas would not say by how much.

Besides unveiling its direct strategy and efforts to revive its struggling commercial PC unit, Compaq touted its next-generation Alpha server, code-named Wildfire. Compaq told financial analysts it expects to realize about $1 billion in revenue from Wildfire this year.

"During our private conversations with them we learned they have about 104 units in backlog, which translates to $150 million in revenue as a significant jump-start to the effort," Poyner wrote.

Compaq expects about two-thirds of Wildfire servers, which are expected to begin shipping next month, to go to existing customers.

Bloomberg contributed to this report.


Copyright 1999 CNet.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.




To: kemble s. matter who wrote (152524)1/29/2000 11:37:00 PM
From: calgal  Respond to of 176387
 
Hi Kemble! OT OT I found this interesting. Certainly Michael's management style is not like this. To me, this is a total contrast. Where is character and integrity? What would Bill Bennett say about these personality traits? :)Leigh

nytimes.com

January 30, 2000

Traits Only a Boss Could Love

Issue in Depth
The New York Times: Your Money
Forum By RACHEL-LEHMANN-HAUPT

To Michael Maccoby, anthropologist, psychoanalyst and scholar of management, executives like Bill Gates, Larry Ellison and Jeffrey P. Bezos exemplify a new personality type that now dominates our business culture: "the productive narcissist."

In "Narcissistic Leaders: The Incredible Pros, the Inevitable Cons," an article in the January-February issue of the Harvard Business Review, Maccoby asserted that such business leaders displayed creative vision, a willingness to break the rules and an ability to persuade people to follow them. But, he said, they are terrible listeners, hypersensitive to criticism and lacking in empathy. All of that, he added, can make them tough to work for.

Maccoby, former director of the technology, public policy and human development program at Harvard's Kennedy School of Government, advises underlings to display great empathy for such bosses' feelings, to understand their vulnerabilities and to always give them credit for the employees' own ideas.

Maccoby, who has studied workplace personalities and strategies for 30 years, was once an associate of Erich Fromm, the famed psychoanalyst. Together, they wrote "Social Character in a Mexican Village"(Prentice-Hall, 1970).

In the late 1960s, Maccoby, then at Stanford, visited companies like Hewlett-Packard and IBM to study people who create technology. Rejecting the stereotype of William H. Whyte's "Organization Man," he found instead the Gamesman, who took calculated risks and tried new methods while making sure to please the boss.

In "The Gamesman: The New Corporate Leader" (Simon & Schuster, 1977), Maccoby defined him this way: "He sees a developing project, human relations and his own career in terms of options and as if they were a game."

Now that entrenched companies face much faster-moving competitors, he says, leaders must take bolder steps and remain obsessive about their visions. "The Gamesman figured out how to win," he wrote in his recent article. "The Jeff Bezoses, the Bill Gateses and the Steve Cases are creating a new game."
(None of these executives, at Amazon.com, Microsoft and America Online, had any comment. Ellison, at Oracle, was not available.

The new business leaders have a great deal of aggression, Maccoby said in an interview. They can become too isolated, because they are so independent, often not asking for advice. "It's a difficult personality type," he says. "But the best ones have a sense of humor."

Maccoby, whose Washington consulting firm bears his name, advises employees that such a boss often has sharp intuition, and that anyone challenging it must be well prepared. "They're willing to listen if someone has a real argument, but when you say, 'Boss, that doesn't feel right,' they get very angry."

He also tells employees to hone time-management skills and to learn what demands are truly worth heeding. "Narcissistic leaders often give subordinates many more orders than they can possibly execute," he said. "Ignore the requests he makes that don't make sense. Forget about them. He will."

A boss lucky enough to recognize these traits in himself or herself should find a trusted sidekick. "But underlings have to be able to reinforce their best side without looking like a sycophant," Maccoby said. He offered the example of Gates and Steven Ballmer, recently named chief executive at Microsoft: "Ballmer brings in the ability to help make Gates' vision a reality in a much more organized way."

As more women gain power in business, he said, it will become clear that they are as prone as men to becoming productive narcissists.

Since Maccoby's article appeared, a forum on the Harvard Business Review Web site has been buzzing. "I've worked for a very unproductive narcissist," wrote Hugh Williams, a data warehousing consultant, explaining that some condescending remarks a boss made during a meeting "cost our company millions in a sale lost."

But Noel M. Tichy, a professor of organizational behavior at the University of Michigan's business school, called Maccoby's work unscholarly. "I think it's an irresponsible article that labels people without proper empirical data," Tichy said in an interview. "He hasn't met half of these people. He just picked a sexy label and put a negative spin on what all leaders should be doing."

Maccoby responded that the people he writes about are so well known that meeting them isn't necessary. "He's talking about a very narrow model of research," Maccoby said. "These are people in the public domain."

Maccoby says he has received notes from chief executives recognizing these traits in themselves and asking to get into psychoanalysis. One chief that he classified as a productive narcissist wrote to say he was hurt that Maccoby only alluded to him, and didn't name him, in the article.

Ask questions and give answers about Personal Finance, Entrepreneurs, and more. Join Abuzz, new from The New York Times.



To: kemble s. matter who wrote (152524)1/30/2000 12:20:00 AM
From: calgal  Read Replies (2) | Respond to of 176387
 
Hi Again Kemble!

I just ran across these links for Dell. I can't wait to compare the statistics in a few weeks. :)Leigh

smartmoney.com

smartmoney.com

Dell is 43.4% owned by Institutions. Has this percentage changed this week?

:)Leigh