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

To: kemble s. matter who wrote (156834)	5/7/2000 5:41:00 PM
From: calgal	Read Replies (1) \| Respond to of 176387

Earnings Watch: Why Dell Will Do Well individualinvestor.2com ID=1696 Research Analyst: Will Frankenhoff (5/6/00) In times of market uncertainty (and we can safely say that this is the atmosphere we face today) investors look at certain stocks as bell-weathers of underlying economic performance. Dell Computer (NASDAQ: DELL - Quotes, News, Boards) is one such stock and investors will be watching closely as the company reports its first fiscal quarter results on May 11. Much ado has been made about the tightness in the chip market, especially the dearth of Intel's (NASDAQ: INTC - Quotes, News, Boards) Pentium processors, which admittedly crimped Dell's earnings in the previous quarter. We believe that this concern is overblown and that chip supply, while tight, is adequate as evidenced by a recent statement made by Morton Topfer, a Dell director, who stated "We've experienced almost no limited component availability." With that concern allayed, we believe that Dell will once again beat expectations on both the top and bottom lines. Analysts are currently estimating that Dell will record revenue of approximately $7.07 billion for the first quarter of fiscal 2001 ended April 29, 2000, a 28% increase over last year's quarter. Consensus earnings estimates are for $0.16 per share, unchanged from last year's period. We believe, however, that Dell stands a better than even chance of reporting revenue in the $7.5 billion range and earnings of $0.18-$0.19 per share. What cause do we have for our optimism? There are a number of different factors. The first reason is that PC shipments, after an admittedly sluggish start of the year, accelerated in March. This was especially helpful to Dell, whose quarter consists of February, March and April. According to International Data Corp., Dell grew its worldwide shipments by 31% during the period and increased its market share from 9.7% in the year-ago quarter to 10.5% in the latest one. The growth was helped by strong consumer sales and exploding demand in the Asia/Pacific region, which offset weakness in Europe. We believe that volume gain will more than make up for a slight 4% to 5% decline in average selling points (ASPs). Another factor contributing to our bullishness is the strength of Dell's server business, which represented 17% of total sales in the most recent quarter. The company is already ranked the number two provider of server worldwide behind Sun Microsystems (NASDAQ: SUNW - Quotes, News, Boards) . In the most recent quarter, industry analysts reported that Dell had gained nearly 5 points in worldwide market share and accounted for more than 40% of worldwide volume growth. In the U.S., the momentum was even more pronounced as the company gained nearly 10 points of market share and sales of its PowerEdge servers accounted for 25% of all servers sold. While we don't believe that such momentum can last forever, we believe that server sales should grow in excess of 40% to close to $1.2 billion in the coming quarter. Dell's notebook and portable business is also showing strength as the company should remain ranked the number one provider in the U.S. with nearly a 20% market share and more than a 10.5% worldwide share. Considering that this segment grew at a rate of over 50% in fiscal 2000, it is not unreasonable to assume a 50% growth rate in the current quarter and we believe that revenue from the portable segment could be approximately $1.8 to $1.9 billion. Simply put, we believe that Dell will show strong growth along each of its product lines. A slight shift in the mix towards the higher margin notebook and server lines should benefit margins (even though Dell might chose to invest some of this upside in infrastructure development) and the continued shift towards sales over the Internet (over 50% of total sales in the most recent quarter) can only improve operating efficiencies. Bottom Line: Fear not investors, Dell shall once again exceed expectations and prove that all's well in its corner of the high tech firmament

To: kemble s. matter who wrote (156834)	5/7/2000 5:41:00 PM
From: calgal	Respond to of 176387

individualinvestor.com Watch: Why Dell Will Do Well Tell us what you think in DELL's Board individualinvestor.com Research Analyst: Will Frankenhoff (5/6/00) In times of market uncertainty (and we can safely say that this is the atmosphere we face today) investors look at certain stocks as bell-weathers of underlying economic performance. Dell Computer (NASDAQ: DELL - Quotes, News, Boards) is one such stock and investors will be watching closely as the company reports its first fiscal quarter results on May 11. Much ado has been made about the tightness in the chip market, especially the dearth of Intel's (NASDAQ: INTC - Quotes, News, Boards) Pentium processors, which admittedly crimped Dell's earnings in the previous quarter. We believe that this concern is overblown and that chip supply, while tight, is adequate as evidenced by a recent statement made by Morton Topfer, a Dell director, who stated "We've experienced almost no limited component availability." With that concern allayed, we believe that Dell will once again beat expectations on both the top and bottom lines. Analysts are currently estimating that Dell will record revenue of approximately $7.07 billion for the first quarter of fiscal 2001 ended April 29, 2000, a 28% increase over last year's quarter. Consensus earnings estimates are for $0.16 per share, unchanged from last year's period. We believe, however, that Dell stands a better than even chance of reporting revenue in the $7.5 billion range and earnings of $0.18-$0.19 per share. What cause do we have for our optimism? There are a number of different factors. The first reason is that PC shipments, after an admittedly sluggish start of the year, accelerated in March. This was especially helpful to Dell, whose quarter consists of February, March and April. According to International Data Corp., Dell grew its worldwide shipments by 31% during the period and increased its market share from 9.7% in the year-ago quarter to 10.5% in the latest one. The growth was helped by strong consumer sales and exploding demand in the Asia/Pacific region, which offset weakness in Europe. We believe that volume gain will more than make up for a slight 4% to 5% decline in average selling points (ASPs). Another factor contributing to our bullishness is the strength of Dell's server business, which represented 17% of total sales in the most recent quarter. The company is already ranked the number two provider of server worldwide behind Sun Microsystems (NASDAQ: SUNW - Quotes, News, Boards) . In the most recent quarter, industry analysts reported that Dell had gained nearly 5 points in worldwide market share and accounted for more than 40% of worldwide volume growth. In the U.S., the momentum was even more pronounced as the company gained nearly 10 points of market share and sales of its PowerEdge servers accounted for 25% of all servers sold. While we don't believe that such momentum can last forever, we believe that server sales should grow in excess of 40% to close to $1.2 billion in the coming quarter. Dell's notebook and portable business is also showing strength as the company should remain ranked the number one provider in the U.S. with nearly a 20% market share and more than a 10.5% worldwide share. Considering that this segment grew at a rate of over 50% in fiscal 2000, it is not unreasonable to assume a 50% growth rate in the current quarter and we believe that revenue from the portable segment could be approximately $1.8 to $1.9 billion. Simply put, we believe that Dell will show strong growth along each of its product lines. A slight shift in the mix towards the higher margin notebook and server lines should benefit margins (even though Dell might chose to invest some of this upside in infrastructure development) and the continued shift towards sales over the Internet (over 50% of total sales in the most recent quarter) can only improve operating efficiencies. Bottom Line: Fear not investors, Dell shall once again exceed expectations and prove that all's well in its corner of the high tech firmament

To: kemble s. matter who wrote (156834)	5/7/2000 5:41:00 PM
From: calgal	Read Replies (1) \| Respond to of 176387

Earnings Watch: Why Dell Will Do Well individualinvestor.com Research Analyst: Will Frankenhoff (5/6/00) In times of market uncertainty (and we can safely say that this is the atmosphere we face today) investors look at certain stocks as bell-weathers of underlying economic performance. Dell Computer (NASDAQ: DELL - Quotes, News, Boards) is one such stock and investors will be watching closely as the company reports its first fiscal quarter results on May 11. Much ado has been made about the tightness in the chip market, especially the dearth of Intel's (NASDAQ: INTC - Quotes, News, Boards) Pentium processors, which admittedly crimped Dell's earnings in the previous quarter. We believe that this concern is overblown and that chip supply, while tight, is adequate as evidenced by a recent statement made by Morton Topfer, a Dell director, who stated "We've experienced almost no limited component availability." With that concern allayed, we believe that Dell will once again beat expectations on both the top and bottom lines. Analysts are currently estimating that Dell will record revenue of approximately $7.07 billion for the first quarter of fiscal 2001 ended April 29, 2000, a 28% increase over last year's quarter. Consensus earnings estimates are for $0.16 per share, unchanged from last year's period. We believe, however, that Dell stands a better than even chance of reporting revenue in the $7.5 billion range and earnings of $0.18-$0.19 per share. What cause do we have for our optimism? There are a number of different factors. The first reason is that PC shipments, after an admittedly sluggish start of the year, accelerated in March. This was especially helpful to Dell, whose quarter consists of February, March and April. According to International Data Corp., Dell grew its worldwide shipments by 31% during the period and increased its market share from 9.7% in the year-ago quarter to 10.5% in the latest one. The growth was helped by strong consumer sales and exploding demand in the Asia/Pacific region, which offset weakness in Europe. We believe that volume gain will more than make up for a slight 4% to 5% decline in average selling points (ASPs). Another factor contributing to our bullishness is the strength of Dell's server business, which represented 17% of total sales in the most recent quarter. The company is already ranked the number two provider of server worldwide behind Sun Microsystems (NASDAQ: SUNW - Quotes, News, Boards) . In the most recent quarter, industry analysts reported that Dell had gained nearly 5 points in worldwide market share and accounted for more than 40% of worldwide volume growth. In the U.S., the momentum was even more pronounced as the company gained nearly 10 points of market share and sales of its PowerEdge servers accounted for 25% of all servers sold. While we don't believe that such momentum can last forever, we believe that server sales should grow in excess of 40% to close to $1.2 billion in the coming quarter. Dell's notebook and portable business is also showing strength as the company should remain ranked the number one provider in the U.S. with nearly a 20% market share and more than a 10.5% worldwide share. Considering that this segment grew at a rate of over 50% in fiscal 2000, it is not unreasonable to assume a 50% growth rate in the current quarter and we believe that revenue from the portable segment could be approximately $1.8 to $1.9 billion. Simply put, we believe that Dell will show strong growth along each of its product lines. A slight shift in the mix towards the higher margin notebook and server lines should benefit margins (even though Dell might chose to invest some of this upside in infrastructure development) and the continued shift towards sales over the Internet (over 50% of total sales in the most recent quarter) can only improve operating efficiencies. Bottom Line: Fear not investors, Dell shall once again exceed expectations and prove that all's well in its corner of the high tech firmament

To: kemble s. matter who wrote (156834)	5/7/2000 6:32:00 PM
From: calgal	Respond to of 176387

Hi Kemble! Sometimes I think SI has a mind of it's own when it duplicates posts. I got this e-mail from Dell as a "reminder from Dell Computer Corporation regarding our Hambrecht & Quist Conference, which will take place 5/8/00 -5/11/00." :)Leigh cnet.com Chase H&Q tech conference opens next week By Rachel Konrad Staff Writer, CNET News.com May 6, 2000, 8:30 a.m. PT First it was any company with a dot-com in its name. Then business-to-consumer, Linux, and finally business-to-business. But finding the next hot stock trend will require more than indiscriminate picking from the right technology niche, said Dan Case, chairman and CEO of Chase H&Q, the investment bank that will host its widely followed technology conference next week. Companies whose market valuations soared because of investor momentum in specific categories--not from a profitable business strategy--will get bought out or go bankrupt by the end of the year, Case said. The current stock market volatility is a reflection of investors' attempts to sort the strategic players from the poseurs. "As the industry matures, a company's fundamentals will become more important than the segment," Case said. "Emotion will become less important." Todd Bakar, director of Chase H&Q research, said certain investors will always look for a hot niche. But weary Wall Street veterans are increasingly looking to relatively time-warn segments of the tech sector, such as the semiconductor business, to find weathered blue chips instead of high-flying corporate newbies. "There is a shift back to basics instead of the search for the sexy trend," Bakar said. "It's a dose of reality that has moved into valuation methodology...It's not that you have to have profits today; it hasn't gone to that extreme. But there's a greater degree of prudence and skepticism. People are stepping back from the psychology-driven market." Bakar expects volatility to last at least six more months as investors search for consistently profitable companies and abandon attempts to capitalize on market momentum. Case and Bakar are bracing for even more volatility in the short term, as their seminal technology conference promises to rattle the tech-heavy Nasdaq. The 28th annual Chase H&Q Technology Conference, to be held Monday through Thursday in San Francisco, will feature presentations from executives at more than 300 companies. Companies range from software giant Oracle and old-economy stalwart Ford Motor to pre-IPO start-ups and besieged Linux firms. The four-day conference at the Westin St. Francis Hotel is a favorite of Wall Street analysts, who often update their financial institutions via cell phones whenever an executive makes a market-moving announcement or projection. Their instant relays often push specific stocks up or down more severely than the overall market in daily and after-hours trading. Publicly traded companies whose executives will give presentations at the conference include: ? Oracle (Monday, 9 a.m. PT): The database giant is ground zero in the business-to-business e-commerce niche--a hot investment segment last year and in the first quarter of 2000, now tempered by Wall Street skepticism. ? Sun Microsystems (Monday, 2:30 p.m. PT): The largest provider of the servers that make up the backbone of the Internet, Sun says that every device with a digital or electronic heartbeat, including light bulbs, can potentially be connected to the Web. ? Phone.com (Monday, 3:30 p.m. PT): A provider of software that allows wireless telephones to access the Internet, the company has been hemorrhaging money while it attracts customers. ? Excite@Home (Tuesday, 5 p.m. PT): The high-speed Internet access provider recently reorganized around three business groups, but several senior executives have announced their departures, raising questions about employee commitment to the company's new growth strategy amid faltering stock performance. ? Microsoft (Thursday, 12:30 p.m. PT): The company is embroiled in an aggressive effort to save itself from a government-imposed breakup, as it faces the challenge of retaining talented workers amid a stock slump.