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

To: Bearded One who wrote (24467)	12/8/1997 12:44:00 PM
From: jbn3	Read Replies (2) \| Respond to of 176388

BO, re 3) Wage inflation is starting to pick up. Meanwhile, prices of goods seem to be stable/decreasing. Thus, profit margins will be affected, leaving less money for capital purchases. If wage inflation is starting to pick up, won't that mean that workers will have more $$ to spend? And if the prices of goods seem to be stable/decreasing, won't that mean that $$ actually translates to $$$$ in terms of purchasing power? Which would mean that the potential market for hi-$ items, including upper end computers, is expanding? And if component prices are falling faster than DELL's wage inflation factor combined with its decreased selling prices, doesn't the bottom line read as 'increased profits'? If not, why not? regards, 3

To: Bearded One who wrote (24467)	12/8/1997 6:41:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 176388

Bearded one: The reports-well there are many that contradicts what you are suggesting,for example i read one where HP says they had the best Nov. ever. The truth of the matter is we wouldn't know for sure untill the final tally is in,untill then we may see many articles with opposing point of views, and i consider them as mere conjectures based on scant information and half-baked surveys, nothing more. As for what you said regarding wage inflation and i quote:"3) Wage inflation is starting to pick up. Meanwhile, prices of goods seem to be stable/decreasing. Thus, profit margins will be affected, leaving less money for capital purchases." end quote. What you have conveniently forgetten here seems to be the 'productivity and efficiency' factor. Though there might be slight inflationary pressure in the wage front, increase in productivity which we have been experiencing more than makes up for it. And if you are talking about the price being 'stable/decreasing' in the PC sector this is nothing to be feared for as the components prices have been steadily decreasing and thereby leaving enough profit margin even in the sub 1000 pcs,yes even with a stable or decreasing prices.