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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Meathead who wrote (22874)	11/24/1997 5:04:00 PM
From: John Koligman	Respond to of 176387

Meathead - Agreed, that's what I have been saying, CPQ beat the consensus number by a couple of cents and started going down a few minutes after the open the next day. It has not shown any kind of strength ever since. DOW has erased the October meltdown but CPQ/DELL are right back around where they were trading back during those days. One thing I find interesting in those 'earnings summaries' that Pat puts together is that the bulls invariably tend to post much higher numbers than what actually occurs, I remember Kelley being quite high last quarter, the same today. I wonder why!!! Well, I agree that the CPQ/DELL long term story looks good, short term it sucks. Too bad I have a position in CPQ (being a short term trader!!). John

To: Meathead who wrote (22874)	11/24/1997 5:04:00 PM
From: James Choi	Read Replies (1) \| Respond to of 176387

<<Hank, Franco, Paul M., has the story changed? Are the fundamentals deteriorating?>> Look at the laptop number. Wasn't it 10% of revenue? Laptops are expected to have a hard time competing against the traditionally strong, and now cheaper, Toshiba, Hitachi and other Japanese brands. Other than that, the balance sheet looks great except the P/E is too high even for this company. That has been my point all along. P/E will be adjusted either by raising E or lowering P. I am afraid P will be taken care of before E has any chance for the next few days or weeks. James Choi

To: Meathead who wrote (22874)	11/24/1997 5:08:00 PM
From: Chi-X	Respond to of 176387

I think we can pretty much figure that the "whisper" number is beaten only if the stock is up in afterhours or pre-market trading the next day. Apparently the open of the Japan markets this evening weighs heavily into how the market reacts tomorrow morning. As for tonight, I wouldn't be too excited about a 1 point drop. AMAT closed down 1 point Thursday and opened up a point Friday morning.

To: Meathead who wrote (22874)	11/24/1997 5:13:00 PM
From: Franco Battista	Read Replies (1) \| Respond to of 176387

Again Meathead, the stock price is telling us that something has changed. It is all perception and the perception for Dell has changed over the past several months. The same thing happened to Intel this spring, after huge stock price growth (very similar to what has more recently happened to Dell), Intel has been slidding. In both cases there are fears of competition deteriorating their future. I took a quick look at the Dell 3rd quarter report and although they try to paint a rosy picture I am disappointed by their margin growth. I was expected a lot more there. With the lower component prices, especially disc drives they should have done better with margins. This might mean that they are meeting increased competition on pricing. The next quarter may reveal more on this issue. Also as they gain market share it will be more and more difficult to outperform the general pc market. I think investors at this point will take a wait and see attitude with Dell. There will not be any great share price appreciation until we either see some real blow-out earnings announcement or a p+e of about 20 for this box maker. That means Dell will hover around these levels for several quarters (trading range of between 60 and 90 IMO, lower if the general market tanks).