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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Pink Minion who wrote (10673)	8/21/2002 6:25:29 PM
From: paul_philp	Respond to of 10921

SemiBear, The reason no other PC company can replicate the Dell Build-to-Order model is the existing distribution channel. It would take time to educate the market that you are now offering a Dell-like service. During that time the PC company would still be depending on their distribution channel for revenue. The disribution channel would rebel as soon as the manufacturer started to compete with it. The switch from indirect to direct selling is very difficult for this reason. There are very few other product categories with an open and modular architecture. The architecture of the PC is what makes the Dell model possible. All the interfaces are standardized so Dell can buy components and simply assemble them together. Servers, PDA's, switches, routers, printers, disk arrays don't have the same modularity. I think you will see this start to happen in storage and servers at the low end of those markets. Paul

To: Pink Minion who wrote (10673)	8/21/2002 10:53:22 PM
From: Cary Salsberg	Respond to of 10921

RE: "They used up 1 Billion in cash last year to buy back stock but shares outstanding didn't go down. I wonder who got those shares." Long term investors should look at growth and quality of book value for companies that don't pay dividends.

To: Pink Minion who wrote (10673)	8/22/2002 10:22:12 AM
From: Kirk ©	Read Replies (1) \| Respond to of 10921

I buy Dell only because they're the only mfg who has figured out how to design a box that's easy to open. I had a Compaq that I never could put back together. Me too! Also, they had a very good refurbished program which HP didn't at the time I bought my last PC. When I had DSL installed, the installer said Dell has patents on its boxes which would explain why the others have not followed suit. Their cash flow does blow away BBY but who cares if shareholders never see it. They used up 1 Billion in cash last year to buy back stock but shares outstanding didn't go down. I wonder who got those shares. ever hear of stock options? That $1B cash is the TRUE cost of the stock option program. Kirk