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

To: kemble s. matter who wrote (172397)	2/12/2003 12:16:53 PM
From: Sig	Read Replies (1) \| Respond to of 176387

I like it, Willcousa saying, Enemy #1 (G) Have considered shorting HPQ with 100% of their profits coming from ink sales. That wiill change but I have no clue how they will do in other areas. Sig

To: kemble s. matter who wrote (172397)	2/12/2003 2:23:05 PM
From: kaka	Respond to of 176387

Kemble, Re: ink Ordered one replacement ink cartridge online at DELL accessories yesterday at 3 PM. Received it today at 11 AM via ups ground. Came from a Dell distribution point upstate; Feura Bush, NY. Efficiency doesn't get any better. Cheers

To: kemble s. matter who wrote (172397)	2/12/2003 5:13:38 PM
From: kaka	Read Replies (1) \| Respond to of 176387

Nobody Does It Better Than Dell Lisa DiCarlo, 02.12.03, 10:00 AM ET Forbes.com NEW YORK - As usual, Dell Computer will be one of the few bright spots in tech when it reports its fiscal fourth-quarter numbers on Feb. 13. Going forward, it appears probable that concerns about the company sustaining growth are overblown. For the quarter, analysts are expecting revenue of $9.7 billion, up 6% sequentially, and earnings per share of 23 cents, up 9%. For fiscal 2003, revenue and earnings per share will be up 13% and 23%, respectively, over last year. Granted, it's an easier comparison than in past years, since 2002 sales and earnings were both lower than 2001 figures. Some have questioned Dell's (nasdaq: DELL - news - people ) ability to grow up out of PCs and expand its business to markets such as storage, handhelds, printers and "enterprise" systems. At first blush, it seems like a fair concern. After all, more than 60% of Dell's sales still come from lowly PCs, a commodity business that has wreaked havoc on companies like almost no other. But also consider that its competitors will never sell a PC as efficiently as Dell. Dell is one of only two companies that extract premium price breaks from Intel (nasdaq: INTC - news - people ) and Microsoft (nasdaq: MSFT - news - people ). Sources say that firms that move 10 million boxes per year get the best pricing. Dell used to be the only company to do that kind of volume, but Hewlett-Packard (nyse: HPQ - news - people ) is now a member of that elite category, after buying Compaq Computer. Merrill Lynch (nyse: MER - news - people ) expects PC units to grow 5% worldwide this year. If Dell decides to sacrifice profit margin and launch a price war, as it has shown a willingness to do in the past, its unit growth could easily surpass 5% this year. Dell is also expanding its sales channels. The company is installing kiosks in retail stores, buying floor space to display its products at Sears (nyse: S - news - people ), and has begun selling nonbranded systems through resellers to gain a piece of the biggest chunk of the PC pie known as the "white box" market. Dell became a pop culture lexicon with its recent "Dude, You're Getting A Dell" advertising campaign, in which actor Benjamin Curtis played an annoying and dorky spokesperson named Steven. The spot was even a parody on a recent episode of Saturday Night Live. Unfortunately, fact and fiction merged this week when Curtis was arrested in New York for marijuana possession, and media outlets around the country borrowed the tagline to report the news of his arrest. In a research report, Merrill Lynch even listed Curtis' arrest as one of the factors "holding back the quarter as well as the outlook." The episode was no doubt an embarrassment for the typically button-down company. On the enterprise--or corporate market--front, Dell doesn't try to be more than what it is. That is, it doesn't try to offer software integration or consulting services or sell million-dollar systems because, although it's profitable, that's not where the volume is. Servers and data storage account for 12% of revenue, or $3.3 billion, Merrill estimates. Storage will reach $1.7 billion in sales in fiscal 2004, driven partially by Dell's sales partnership with EMC (nyse: EMC - news - people ). In peripherals, Dell will soon launch a line of printers made by Lexmark International (nyse: LXK - news - people ). The goal is not to break the mold with printers but to reap the hefty profits from ink and toner cartridges that must be routinely replaced. Dell hasn't discussed pricing specifics, but the company will no doubt try to undercut HP's ink and toner prices. The initiative should be successful if Dell can establish high "attach rates" of printers sold as a bundle with PCs. Opinions are mixed on whether Dell will be a force in the printer industry; indeed, not all of its partnerships have yielded fruit. Yesterday Dell said that two deals it signed with IBM (nyse: IBM - news - people ) in 1999 wouldn't meet expectations. A seven-year-long deal for services that was earlier expected to bring in $6 billion will fall short. And a $16 billion deal for the sale of IBM components to Dell has been phased out because IBM has largely exited those businesses. Competitors love to point out that Dell is not a technology company but an assembler of parts of other companies' inventions. Dell only spends 1.5% of revenue on research and development, so to a large extent that's true. But who cares? Dell partners with best-of-breed companies for the stuff it doesn't want to do or can't do, and that seems to satisfy its many corporate customers. Witness the success of its resale partnerships with EMC and Oracle (nasdaq: ORCL - news - people ). Of course, company growth hinges partly on IT spending growth. Dell has been cautious and, in fact, it's possible the company will temper forecasts tomorrow. As Merrill points out, Dell is "upbeat on its own execution and share gain opportunities." That being the case, the drop in the valuation of its stock--Dell trades at $23.24, down more than 20% this year--is starting to look attractive.