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: Chuzzlewit who wrote (19970)	10/30/1997 3:51:00 PM
From: Rio Jangada	Read Replies (2) \| Respond to of 176387

Paul, Unlike you I feel that the DELL fundamentals are changing. Overseas demand is expected to tumble and fresh price pressures are evolving. Nonetheless, I may cover my DELL short very soon for a number of reasons, including the fact that interest rates on the 30 yr bond seem to be making new lows. Do you feel this will continue? Thanks much RJ

To: Chuzzlewit who wrote (19970)	10/30/1997 4:15:00 PM
From: jim kelley	Read Replies (3) \| Respond to of 176387

Paul, I do not see any evidence of a pricing war between DELL and CPQ. Their product lines and sales channels are quite different. CPQ has to worry more about HWP and Packard Bell this Christmas. Last quarter there was no pricing competition in the low end of the market because supplies were limited compared to demand. The increase in CPQs COGS is probably due to the low cost PC. The margins just are not as good on these units. They contributed little to CPQ profit last quarter. But as I mentioned they are a retail channel weapon to take shelf space. I am not sure whether the demand for these low cost PCs will increase. I think a lot of families bought these as second computers for their school age children. So the competition in the low end may actually backfire on CPQ, HWP, IBM and BELL. Regards, Jim Kelley