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: William F. Wager, Jr. who wrote (172585)	3/28/2003 5:10:14 PM
From: kemble s. matter	Respond to of 176387

Bill, Hi!! RE: What's Dell's secret? Efficient factories and direct sales keep costs low, allowing the computer maker to undercut competitors and steal market share, especially while demand has been soft. And because Dell collects from many customers long before it fills orders, it has little debt. In 2002, Dell, No. 14 on the annual BusinessWeek 50 list of top-performing companies, expanded sales 14%, boosted net income 70%, and kept its debt-to-equity ratio a lean 10.4%. HEFTY PREMIUM. Having proven it can outrun a technology recession, Dell should see its shares soar as investors gain confidence, right? Probably not. Dell's valuation remains rich -- 27 times expected earnings for fiscal 2004, which ends Jan. 31, compared to 13 times for rival Hewlett-Packard (HPQ ). Part of that premium is due to Dell's dependable execution, analysts say. It hasn't had to guide Wall Street lower for seven straight quarters and has remained free of accounting scandal and management missteps. DELL's secret, that really is, no secret to IT managers...The DELL experience...What DELL brings when you deal with them...That's the real "secret"... And, as for the "Hefty Premium"...Well, just visualize Wal*Mart...Then picture DELL becoming such..."THE OPPORTUNITIES ARE NUMEROUS".. So how "hefty" is the stock price when one visualizes a company, that can sell whatever they feel is of the most profit, bring the DELL experience with it, and no other company can compete with the quality or value? The DELL experience is what IT managers really want...The items they purchase are frequently not their first concern...Sure they want the product(s)...But, it's what DELL can show them that makes DELL their preferred choice..."Bringing them inside DELL" Best, Kemble