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

To: calgal who wrote (152673)	1/30/2000 12:34:00 PM
From: rudedog	Read Replies (1) \| Respond to of 176387

Leigh - A number of comments from various folks this week, including an analyst buddy of mine who was at the CPQ event here in Houston, have helped clarify my thinking on recent events at DELL and explained at least a little the confidence that the street still maintains in DELL's prospects. My friend commented that DELL's underlying business strength and their spectacular conquest of the PC market did not really train DELL senior management for dealing with adversity - they are mostly used to winning. This led to some overconfidence in their ability to just blow through problems and also to some miscalculations about their ability to deal with multiple problems at once - supply chain disruptions, rising component costs, increased margin pressure, "the law of large numbers" affecting growth potential, difficulty in luring and maintaining top talent in the face of opportunities at internet startups... but still, DELL is growing twice as fast as the industry they are in and doing it profitably. This guy thinks that the biggest problem facing DELL is just getting management to reset their expectations and style to get to a more realistic appraisal of the future, and become more predictable. He, like me, doesn't think the last two quarters were really affected by the things DELL management mentioned, but he believes DELL management honestly believes those reasons, and that they are just a little slow to accept that it will be harder from here on out. He has a lot of respect for the DELL team and thinks that after this reset, they will come back stronger than ever and will develop a more realistic view of what's possible for them, and what they have to do to change their direction. I hope he is right - I would much rather believe that DELL management just got a little high on their own success and allowed expectations to get set too high, than that they were misleading their investors.