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

To: D.J.Smyth who wrote (160649)	9/12/2000 9:07:27 PM
From: kaka	Respond to of 176388

Are hardware companies serious about services? September 12, 2000 08:54 AM PT by Ryan Tate Dell (DELL: -0.50, 37.81) shares fell this morning after the company said it will buy $4.7 billion in memory chips, monitor tubes, flat-panel screens and CD-ROM drives from Toshiba over the next three years. Analysts are telling the Street that hardware is not what Dell needs most right now -- what Dell needs is services contracts. The direct-selling retailer has traditionally sold services through partnerships, but in the wake of Hewlett-Packard's (HWP: -2.44, 111.56) $18 billion bid for the consulting arm of PricewaterhouseCoopers, analysts said it would be good for Dell to look at acquiring an in-house services division. HP's deal made sense because, even though the firm has a robust internal services division, the company isn't seeing as much consulting cash as IBM (IBM: +1.75, 126.25), whose $32 billion in services sales for fiscal '99 dwarfed HP's $5.2 billion for the same period. Money like that could help HP make up for slower PC sales. Sun may follow HP Analysts say services contracts are best for companies selling lots of high-end server systems rather than PCs. In fact, they say the company most likely to follow in HP's footsteps and go on a services buying spree is none other than Sun Microsystems (SUNW: +2.94, 118.19), which sells no PCs whatsoever and is already enjoying fat margins and brisk business, insulated from the dropoff in PC receipts. Bear Sterns warned of near-term pressure on HP this morning, while maintaining its "buy" rating on the stock. Ellison to go without pay? An SEC filing from Oracle (ORCL: +0.38, 83.81) revealed that Larry Ellison will go without cash pay through May 2003, accepting 20 million stock options in that time instead. That's 6.4 million more stock options than he would have received anyway. Ellison has not received a paycheck from Oracle since June 1999, in fact, when the company's shares were trading at a split-adjusted price of about $18 per share. The stock, of course, ran up nearly sixfold after that. The company's disclosure puts Ellison's Oracle wealth ahead of Bill Gates' Microsoft (MSFT: -0.06, 68.75) money. While Gates was worth about $51 billion at market close Monday, based on Microsoft holdings, Ellison's Oracle stake valued the CEO at $55 billion. But Gates has billions in non-Microsoft investments that make him worth more than $60 billion in total, eclipsing Ellison.

To: D.J.Smyth who wrote (160649)	9/13/2000 7:30:29 AM
From: edamo	Read Replies (1) \| Respond to of 176388

darrell........crus/dell........thanks that is why i stated earlier that crus is a stock i have been buying..... prefer at this time those companies that create the technology over those that apply same... dell is a great company for what it does....but the market focus is not on the dell's of the world....investment dollars, right or wrong, are flowing in (and sometimes out!) of forward vision companies......the "forward vision" is that which dell lacks......and i have been vocal on this point since q1 1999............ like it or not...the investment community cares not about "what have you done for me lately".......more in tune with "what will you do for me next quarter"..... myopic, yes........but a fact of life in the new (past 5-8 years) of investing..... volatility is here to stay.......ltb+h perhaps passe? this coming from one who was a strong advocate of same (until late 1998)......now a convert to momentum/topping indicators to take profits..... thanks again and good luck....ed a