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

To: Mani1 who wrote (152880)	2/3/2000 9:44:00 AM
From: kemble s. matter	Read Replies (1) \| Respond to of 176387

Mani, Hi!! RE: My question is how close is the price of DELL to properly account for this shift in the supply chain, and how close is DELL from being a good buy? I think we are close. Agree... Best, Kemble

To: Mani1 who wrote (152880)	2/3/2000 12:52:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Mani, Dell's model is no longer superior. Surely you jest! Other box makers are trying to emulate Dell's model (with little success). The key to Dells' success continues to be its exceptional asset turnover ratio because maintaining inventories is the kiss of death for two reasons. First, inventory obsolescence is very costly, and while it may have buffered Dell for some components, it would have created inventory write-downs for obsolete CPUs; Second, high turnover implies relatively small capital requirements for expansion. That's why Dell has been a cash cow at the same time it has grown unit sales 40% - 55% p.a. in the past. The supply chain problems will disappear as component manufacturers ramp up production to match demand. IMO, the real question is not the superiority of Dell's model (that's a given), but how it can migrate that superior model into non-box growth areas. TTFN, CTC