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: John Koligman who wrote (20146)	10/31/1997 2:29:00 PM
From: Markus	Respond to of 176387

TO: John Koligman She is human, and she can make mistake. However, I must admit that you are right in pointing out that she miscalculate the number of share outstanding. That is a mistake that should not happen in the first place for a person on her position. Even us small potato can get the number of outstanding shares right. CPQ did took a dive on earning day. But it was expected, due to unrealistic whisper number, which she also played a part. The same thing happen on earning day of Quarter 2. On the other hand I do not really put too much emphasize on her EPS estimate. What I am looking for is her opinion on CPQ and DELL future in the PC industry. And she gives a very promising report and recommendation for CPQ and DELL. I used her opinion as an added bonus into my own opinion about CPQ. I am long on CPQ now. But I do believe CPQ and DELL will be the leaders in terms of market share and profitability. The reason is both companies have different philosophy. CPQ is like your family doctor. CPQ targets all market segements from Corporate, Education, and Consumer, as well as offering all product lines from server to sub 1k PC. DELL is like a Neuro Surgeon. It only targetted specific segment of the market. And build it products around that market segment (Corporate Buyers). CPQ and DELL share prices will be back into tripple digits area, where it belongs in the beginning of 1998. The reason is 3rd Quarter is DELL strongest quarter, and the company might beat the estimate by a large margin. So is with CPQ in the fourth Quarter. Just remember the holiday season. It will be a blowout quarter for CPQ. Yes the margin is thin with sub 1k PC, but CPQ will do it with volume. Just imagine this factor alone. Instead buying little Joe and Jane the Play Station or Nintendo 64, which cost $150 to $200, Mom and Pop will buy them the sub $1k PC. Since it's under $1,000 it can fit into the average credit card purchases and some stores also offer financing plan. I think recent sell of in CPQ and DELL is overdone. Those are my opinion on CPQ and DELL. Ms. Painter's report gives me more conviction on my premise above. In fairness to Ms. Painter recent weaknesses in CPQ and DELL share prices are caused by market events (International Currencies Crisis), and the threat of Mid-East Crisis. In addition to that most fund managers want to lock in their profit for this year. For example Fidelity Select High Tech has a 50% + return year to date. If I am the fund manager I will lock in my profit now. Why do I have to risk my stellar performance for the year by staying in the market for another two months. I take my profit and put the cash into bonds. It's like The Chicago Bulls, if they have a commanding lead late in the fourth quarter the coach will bench Michael Jordan and let the back up players finish the game. Bye, and Good Luck To You.