To: McNabb Brothers who wrote (19205 ) 10/27/1997 11:36:00 AM From: Chuzzlewit Read Replies (1) | Respond to
Hank, as a former s/h in OXHP and one who's has followed this stock and the group closely I'd like to make a few comments about the differences between OXHP and DELL. Starting several months ago news stories began appearing regularly indicating that that HMO's were coming under increasing magin pressures due to greater than expected costs and increasing competition. Since the fundamentals (both long-term and short-term) had turned negative on the group, I exited OXHP with a handsome profit. This is clearly not the case with the box makers. The latest reports indicate that computer sales are up nicely both domestically and world-wide, with CPQ and DELL making large gains in market share based on units shipped. Decreasing component costs may actually improve margins for DELL since it is in the high end of this market. This is in sharp contrast to OXHP where costs were increasing.
