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

To: Jean M. Gauthier who wrote (159295)	8/9/2000 11:37:10 AM
From: spja	Read Replies (1) \| Respond to of 176387

Jean, And, take a look at relative performance chart of DELL, GTW, CPQ. Not a pretty picture. But, will Dell rise again? Problematic, and I'm not sure whether this market likes 'problematic'.

To: Jean M. Gauthier who wrote (159295)	8/9/2000 12:28:43 PM
From: stockman_scott	Respond to of 176387

'DELL stands at the Crossroads'...FYI... zdii.com <<...Despite analysts' concerns about future earnings growth at Dell, it remains "one of the best run companies in the industry," said IDC's Kay. In a way, Dell has become a victim of its own success, he said. The company's successful climb to the top of the computer industry has brought with it increasing scrutiny, which results in greater attention given to any failings on its part, real or perceived. "The last time I looked they were trading at 68 times earnings," Kay said. "Even if they have fantastic growth rates, meeting the expectations built into that number is extremely difficult." The recent drop in the price of Dell's stock that occurred shortly after Kumar lowered his rating on the company highlights the problem, he said. "If they turn in anything that's even slightly disappointing," Kay said, "they run the risk of having their stock price whacked." >> -------------------------------------------------------- I am watching from the sidelines now (only my relatives have held most of their DELL shares)...I prefer to be fully invested in the fiber optics sector -- in emerging pioneers like AVCI and JNPR. I am willing to take calculated risks and am looking for some serious UPSIDE potential when I invest now. Good luck investing DELLheads...;-) Best Regards, Scott

To: Jean M. Gauthier who wrote (159295)	8/9/2000 12:34:28 PM
From: jim kelley	Read Replies (3) \| Respond to of 176387

You need to check your fundamentals before going out on a limb you like just did. SUNW's earnings are less than DELL's and its reverse PE is 109. Moreover, DELL's rate of growth is still higher than SUNW's and DELL has pushed SUNW out of the pole position in the workstation market. Next, DELL will push SUNW out of the low and mid range server market. Eventually, DELL will push SUNW in the high end server market with Itanium enterprise servers. SUNW will not have the economies of scale to compete with DELL on a price performance basis. CSCO grows through successful absorption of its acquisitions while DELL grows through its own efforts. Again CSCO PE is double that of DELL. Nevertheless, DELL does not compete against CSCO as it does against SUNW. By the way, SUNW's strength is not R&D as you seem to think but its marketing. SUNW bought it high end server from SGI and simply did a far better job marketing than SGI. The argument you are making for PE compression applies even more strongly to CSCO and SUNW than it does to DELL. So while these companies all exhibit earning growth rates in the same ball park, DELL is clearly the better value from a PE standpoint. :)

To: Jean M. Gauthier who wrote (159295)	8/9/2000 12:52:33 PM
From: Mike Van Winkle	Respond to of 176387

Jean M. Gauthier re: please do not bite my head off. And the reason for doing that would be what? All thoughts on the future are plausible including negative views on current glamour stocks priced for perfection. I focus on the company performance and it looks good to me. Last years 2Q is a tough comparison given the special surge in growth in that quarter. Saturation has been discussed here. I don't see Europe, Asia, Latin America as saturated, and the US is not a dead horse. How many cars are in the garage? If there are two adults, there will be two cars, every new kid in college requires a computer, soon to be the case for grade school. I expect 30% growth in earnings for the year as projected along a trend line (current low as 11 point below the trend). With new money from the boom generation needing to find a good return, I can't see PE's for excellent companies collapsing. I also don't see it flooding into priced for perfection stocks forever. The .coms this year saw some air escaping (investors will never forget that<G>). Thanks for the thoughts on the future. Best, Mike

To: Jean M. Gauthier who wrote (159295)	8/9/2000 1:39:44 PM
From: Sig	Read Replies (2) \| Respond to of 176387

Jean: <<<I have some comments people>> Your comments seem to show the investment community's present opinion of Dell very clearly, and is reflected in the stock price today. I disagree with much of it, which seems to lack comprehension of where Dell is going and has a negative outlook on their chance of success in areas other than PC's On the bright side of the PC future are the students of today. Computer literate. Computers a requirement for college students( mostly laptops). A new class of graduates each year who will either go to work for companies using computers,(Ford, BA,Shell, K-mart, government service) or buy their own while starting their own business whether that be dentist, lawyer, accountant. I doubt if they will buy used equipment. When the auto companies go back to making mostly 2-door trucks instead of 4-door, 4cyl- 100hp engines, no radio or A/C, plain steel wheels instead of fancy aluminum, it will convince me our move-up and show-off society is finished. Until then there is a market demand for "loaded" state of the art computers such as Dells. Sig