Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: BWAC who wrote (164106)	2/15/2001 10:38:07 PM
From: rudedog	Read Replies (2) \| Respond to of 176387

BWAC - I can see you are a glass half full guy. DELL did not account for 30% of worldwide revenue growth in servers - they drove a huge amount of low end server business using the PC model, and at PC margins. CPQ grew server revenue 40% on a 20% unit increase in the same period that DELL grew revenue in that segment 20% on a 40% units increase. With additional price cuts, DELL may be able to get to a point where revenue does not grow at all no matter how many units they sell. DELL has clearly abandoned the path I thought they were on - to move the company upscale into higher margin business, using the early penetration of low end servers to support an internal move to build higher end capability. They will never move upscale without that investment. Their margin has now dropped 5 points from where it was historically. Their net has dropped 3 points - 40%. I don't want to be invested in the tallest midget in the circus - a company which has been unsuccessful in applying their model to anything but an increasingly commoditized volume business, has not managed to make the model work outside of the "english-speaking" market, and can't seem to change their thinking to adjust to the position DELL now has, and the new environment they are operating in. All that crap about ROIC and cash from operations does not make me a nickel. My investment in DELL has steadily decreased in value and I see nothing on the horizon to drive it up much from here. If I had any faith in the story management is telling, I might feel differently - but over the last 18 months, they have shown that the guidance they provide, and their projections of future performance, are either incompetent or intentionally misleading. I don't really care any more which is true, I am looking at an exit strategy...

To: BWAC who wrote (164106)	2/15/2001 10:56:40 PM
From: Meathead	Read Replies (2) \| Respond to of 176387

RE: 1.)Dell accounted for 30 percent of worldwide server growth, expanding at more than three times the rate of the industry and adding two full points of market share in that product category. That's terrible. It should be twice that or better... more like 110%-130% of WW server growth. In fact, I bet IDC, DataGuess and Dell are all lying and it's really half that. 2.)Net revenue totaled $8.7 billion, a 28-percent increase. Full-year revenue totaled $31.9 billion, up 26 percent. But they promised 30%. They lied, lied, lied. They knew for a fact a year ago that they wouldn't hit 30% yet they lied about it anyway to purposely dupe the public. They must be idiots to not have known that they economy was going to hit the wall... every other company seemd to know it and was well prepared. You just can't trust these clowns. 3.)Full-year revenue totaled $31.9 billion, up 26 percent. Fiscal-2001 net income rose 24 percent to $2.3 billion, or 84 cents per share Pathetic. 4.)cash from operations during the period was $1.2 billion, (for the quarter) Hell guys that is a run rate of $5 BILLION a year! What more do you want? What more do you reasonably expect? A lot more! In today's society, we demand and deserve more of everything. In fact more is not enough. It should be 2-3 times that much if they hope to stay afloat. 5.)Return on invested capital, which helps illustrate the industry-best efficiency of Dell's business model, was 325 percent, exceeding 200 percent for the seventh consecutive quarter. And you moan about the crap job management is doing????!! What the???? 325% sucks. It should be over 400%. The Dell management Bozo brigade has really bungled this one. Most of the threadsters here could easily do a much better job of running this company. I know cause I read their posts which are full of insightful "how to's" and "should have's". 6.)Cash and investments at the end of the quarter stood at $7.9 billion. What a bunch of morons. I bet they don't even realize that they could acquire a highly inefficient competitor for $8B and get hundreds of spunky country stores to boot. Better yet, they should get outside the box and maybe start acquiring fast food chains. MH

To: BWAC who wrote (164106)	2/15/2001 11:16:46 PM
From: John Koligman	Read Replies (1) \| Respond to of 176387

BW - Where 'you been for the last two years??? John <ggg>

To: BWAC who wrote (164106)	2/16/2001 7:34:49 AM
From: edamo	Respond to of 176387

bwac..."can any number ever satisfy you" its not the thread that requires to be sated.....more like the equity markets.... dell a good company, but the stock a different story.... i'm sure those that bought into the mystical qualities of "mikey" conquering the world like genghis khan and putting laptops in the hands of every individual in the prc had their heads handed to them in an investment sense... the perversity applies not to dell, but to all companies and the shareholders who believed that growth would remain exponential....at some point reality sets in...