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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Joseph G. who wrote (9256)	11/24/1997 4:50:00 PM
From: Cynic 2005	Read Replies (2) \| Respond to of 18056

Joe and all, I took a look at DELL's earnings. Something is fishy: Mr. Clean, Michael Dell says that their average unit selling price is "stable." Revenues up by 58% and net is up 72%. Commendable! But, the kind of cynic I am, I see some disconnects: 0. Mr. Dell claims ASP is "stable." 1. Last Q gorss-margins @ 22.2 Current Q gross margins @ 22.5% 2. From last Q, Intel cut CPU prices, diskdrive and memory prices plummetd. We know 2 is correct. If #0 is correct, #1 can't be right! Gross margins have to be much higher. And the earnings have to be much higher. Unless, they did the customers an unasked favor by giving away stuff. If they did give-away stuff (higher performance machines for the same ASP), it won't be long before DELL catches the same virus MUEI and GTW caught! i.e. their average selling price has to and will decline in the next quarter. So will their gross margins. I hope the herd runs-up the stock. I think it is finally time for shorting DELL. -Mohan

To: Joseph G. who wrote (9256)	11/24/1997 4:52:00 PM
From: MythMan	Respond to of 18056

Joe, >>Have to ask Pete re: BK.<< Its a myth, and its bs. Pete

To: Joseph G. who wrote (9256)	11/24/1997 6:21:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 18056

JOseph, I think it is time for some 1953 Rothschild's Armagnac, it stays with you longer then a Remy. As for the "few" bears amongst us, get ready to cover some of your bets late tomorrow. I am getting a feeling that we are going down too fast, and if Tokyo drops as much as I think it will tonight (some 700 plus little points) then by Wed we might be ready for a little rally which as usual will carry to Fri. If we do not get excessive negative tick tomorrow, you can delay your decision till mid day Wed. Late Fri. would be a good time to lay out new bets (when all the gutless cover theirs <VBG>). Zeev