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

To: Gabriel008 who wrote (152721)	1/31/2000 11:14:00 AM
From: jim kelley	Respond to of 176387

Angel, Is there any confirmation of that last statement?

To: Gabriel008 who wrote (152721)	1/31/2000 11:19:00 AM
From: JRI	Read Replies (2) \| Respond to of 176387

G- I have seen Meredith talk about NET margins in the 7.0-7.5 range (I suppose that works out to mid-teens GP)....IMO, this is partially due to the "recalibration" of expectations, ie., set 'em real low, so that they are easy to hurdle...however, it is likely (also) an indication of what Rudedog (has alluded)..that the component pricing environment is likely to be somewhat difficult for Dell (going forward)...not as bad as 3Q, 4Q '99..but certainly worse than what Dell experienced in '98, and the 1st half of '99... Given Dell's shift to higher-margin products, I believe it is more the case of a low-ball...than component pricing problems (ie..the higher-margin products should provide some cushion) to the more difficult component pricing. My view: Mid-teens REALLY mean Meredith expects high teens or close to 20 GP...Net margins really around 7.6, 7.7...(barring unforeseen surprises, like (supposedly) last quarter)