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To: Lizzie Tudor who wrote (12855)	7/19/2002 3:02:43 PM
From: stockman_scott	Respond to of 57684

Interesting comments on Hedge Funds... Message 17763732

To: Lizzie Tudor who wrote (12855)	7/19/2002 3:54:00 PM
From: stockman_scott	Respond to of 57684

Feeling good at Dell meeting CEO tells shareholders of growth plans; ads' 'dude' wins applause By CRAYTON HARRISON / The Dallas Morning News 07/19/2002 AUSTIN – Dell Computer Corp. shareholders seemed complacent Thursday to be holding stock in one of the few technology companies that has been stable in the last two years. They raised no challenges to chief executive Michael Dell's plans to dominate other areas of the technology industry. The company wants to double its size someday by expanding beyond personal computers to network switches, more complex servers and other markets, he said at the annual shareholder meeting at the Austin Convention Center. A few shareholders urged Dell to improve its recycling program, and two asked the company to pay a dividend for the first time. The company's policy is to use cash to repurchase shares. But investors applauded wildly when Mr. Dell mentioned the company's advertising pitchman, a "dude" named Steven, and booed when environmental activists chided Mr. Dell. Mr. Dell explained why shareholders were feeling so good in such a poor economic climate. "Just as it's clear that there are advantages when a market is growing, there are advantages in the bad times," he told the packed convention center ballroom. "The strong companies get stronger, and the weak companies," he paused dramatically, "don't get stronger." Mr. Dell pointed to the company's innovation in manufacturing, which has allowed it to sell computers at low prices while still earning a profit. And he said a strong relationship with suppliers has allowed Dell to hold sway over computer component prices. Competitors such as Hewlett-Packard Co. have been emulating Dell's manufacturing model, but Dell is way ahead, the chief executive said. The company reaffirmed second-quarter guidance it gave last week, with revenue of $8.3 billion and earnings of 19 cents per share, and plans to report earnings Aug. 15. Dell also plans to expand its services business as it delves into more complex technology, such as servers and storage devices. Wall Street analysts have largely cheered Dell's new roster of products, but some are nervous about the company's services endeavor, saying it costs more and doesn't fit as well into Dell's lean, no-frills business model. The company will focus on specific services, such as designing data centers and improving clients' configurations of Microsoft software. Dell can offer those services at a lower cost than competitors that have a wider range of services, Mr. Dell said. "We think there's an opportunity to differentiate ourselves from fully custom providers," he said. Shareholders overwhelmingly re-elected Mr. Dell, Michael Jordan, Klaus Luft and Sam Nunn to the board. Sixty percent of shareholders also approved small changes to Dell employees' stock options plan. Dell shares closed at $26.05, down 2 cents.