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

To: indep who wrote (164980)	4/26/2001 11:36:22 PM
From: rudedog	Read Replies (3) \| Respond to of 176387

indep - a macho but silly analysis. The hammer came down all right - it came down on DELL investors. Do you know that CPQ stock outperformed DELL over the last 2 years, and also over the last year? I was surprised too, but it's true - see Message 15718885 As an investor, I don't care how many companies DELL puts out of business if they can't turn it into shareholder value. DELL has to eat 80 cents for each 40 cents they cost the competition - since DELL has so much more of its business in PCs. DELL does not have the big Unix servers or mainframe class products that CPQ and IBM have. HP has high end Unix and of course the printer business. What would happen if DELL did as you suggest is that DELL stock price would drop through the floor. They are on the edge now, what makes you think they could cut farther? With a Net profit of less than 5% they really don't have room to fool around.

To: indep who wrote (164980)	4/28/2001 11:35:17 AM
From: D. Swiss	Read Replies (3) \| Respond to of 176387

indep, I respectfully disagree that the picture is a bleak for the other companies as we speak. IBM is making money in its PC business and is more Dell-like. HP is doing ok and Compaq is doing ok (their new IPAQ is a smash hit, just try to get one - I called NECX.com, GTW's accessory arm, and there is a 40,000 unit backlog). GTW will probably get acquired and/or shed some more country stores to be more profitable. In December 2001, IMHO, Dell will be back to slowing growth at low margins. Remember this year their revenue grew 27% without dropping one penny to EPS. Now they are set up for top line failure. They have a larger base to grow from and their competitive advantage has narrowed as others became more Dell-like after years of major league butt-wooping by Dell. As I said before it is and probably always will be a legendary company, but its stock is another story. I still think you will get decent returns, but to me the downside risk is not insignificant. :o) Drew