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: t2 who wrote (164931)	4/25/2001 10:38:47 AM
From: D. Swiss	Read Replies (3) \| Respond to of 176387

NV, re: "As long as the price cuts are a result of cheaper component costs, it can't be bad" It is bad, check the gross margin declines (http://www.dell.com/us/en/gen/corporate/investor/finpr_us_2001-02-15-aus-001.htm) yoy from 19.2% to 18% and net margin from 6.4% to 5%. YOY EPS is flat on a 27.4% revenue increase, that is very bad. Dell used to have gross and net of 22.7% and 8.4% respectively. If they only maintained those %'s you could add about $20 to the stocks market value based on the current PE of 32x trailing EPS. :o) Drew