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

To: D. Swiss who wrote (164928)	4/24/2001 5:49:31 PM
From: D.J.Smyth	Respond to of 176387

CPQ still posted a decent profit in their corporate division in the U.S. market, a continued Dell stronghold. It was CPQ's U.S. consumer division that was dragging, a market in which Dell is still attempting to gain share. But the market makers can't fight Dell's public relations war for them. If Dell isn't willing to defend their territory and remain verbally consistent, Dell drops. Someone is having fun. Nevertheless, Dell, today, by the sin of omission, tacitly supported analyst comments. It's always someone new, though, making the headlines.

To: D. Swiss who wrote (164928)	4/24/2001 6:00:20 PM
From: t2	Read Replies (1) \| Respond to of 176387

Dell and CPQ are cannibalizing themselves and the shareholders are paying the price. You would think after all the years of price wars in this business, people would learn that the winner is the consumer. As long as the price cuts are a result of cheaper component costs, it can't be bad...especially if end demand is stimulated as a result. Under such a scenario, Dell has to be in good shape, taking market share and preserving profitability. You can bet price cuts would not be that severe in PCs when there is greater demand. I believe pricing is more a function of end demand. My understanding is that Dell ran into problems when component prices started rising, taking away the competitive advantage of low inventories. Low component costs as long as possible is the ideal environment for Dell when they have 5 days of inventory. About insiders selling..Could be tax related and obviously can be connected to the significant gains the stock made this year. I noticed that Michael Dell has not been as active in sellling. So many other industries in which stocks have gained also see insider selling. Like I stated earlier, this is a lesson learned from the dot.com bubble. Everyone is learning that diversification is necessary especially with most of the wealth tied up in one stock. That could also be a factor at work right now, more than ever. Insiders of Microsoft, for example, always have sellers, whether the price is high or low...never really a key factor for that stock price.