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

To: jmac who wrote (161280)	9/29/2000 10:35:34 AM
From: D.J.Smyth	Read Replies (2) \| Respond to of 176387

this stock is currently priced for 18% growth and the lowest peg in its history. yet sales remain fine from all current indications and the expected PC growth rate from IDC for this year and next is higher than the expectations they set in 1996/97! what do these people want?

To: jmac who wrote (161280)	9/29/2000 10:56:38 AM
From: Bob Kim	Respond to of 176387

jmac, Here are some excerpts from ML today about AAPL: "We believe there is a high likelihood that investors will overreact to this news and take down the PC names in sympathy. We would particularly view this as a buying opportunity for Gateway (GTW; $54; C-2-2-9), and to a lesser extent, Compaq (CPQ; $28.25; B-2-2-7 and Dell. (DELL; $33.44; B-1-1-9)." [emphasis added] This doesn't sound like a ringing endorsement. "While we had been maintaining our Accumulate rating on Apple shares due to an easy compare in the September quarter for PowerMac, we have been very cautious over the past couple of months due to our belief that the company would experience marked slowdown in sales growth beginning in the December quarter." [emphasis added] During this cautious period (say 6/30 to 9/29) he raised his price target on AAPL from $52.50 to $70 and lowered his price target on Dell from $70 to $54. BTW, I also have a profile for AAPL on my site. Here are some interesting comments from ML's retail analyst in defense of the electronics retailers in light of the AAPL warning: "Apple provides no price protection during model change over. So retailers stop ordering very early in each cycle. Other PC vendors do provide some price protection in order to maximize sell-through." "Apple gives almost no advance warning on new products so retailers often wait to order. HP and Compaq operate in exact opposite way with PC stores so that early ordering and advertising plans can be established." "Main retail channel for Apple has been CompUSA. On our last conference call, we estimated –25% comps at that chain as they were deliberately walking away from business." "PC demand has been shifting from desktops to laptops with Compaq and Toshiba having higher market shares. Laptops are where most of the incremental sales growth is coming at PC retail stores today."