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

To: Meathead who wrote (25681)	12/18/1997 9:24:00 PM
From: Jim Patterson	Read Replies (4) \| Respond to of 176387

The 70% stock drop was not due to the price war however. Dell had just brought in John Medica (ex. powerbook director of engineering) from Apple to lead the Dell notebook line. His first order of business was to review Dell's roadmap. He took one look and said "this is junk, scrap everything and start over". So they took a $70M writeoff and had essentially no EPS for the year The fact that M.Dell Admits that he did not cut prices because he did not want to compete on a price basis. He also thought that his company was growing to fast and he thought this might slow things just enough for management to catch up. Much to his supprise, His stock fell 70% and the company almost got into serious financial trouble. The move into retail stores was another hugh financial mistake. Now If you want to think that the stock went down because of a write off, Have a nice day. Oh yea, The stock price decline also revieled the agressive option / hedging stratagy that DELL still has not stoped. Jim

To: Meathead who wrote (25681)	12/18/1997 10:08:00 PM
From: hpeace	Read Replies (1) \| Respond to of 176387

meathead, part of the 70% drop was past of cpq's low cost pc relase in june of 1992... just pull up the graph in SI and look at what happened the same week cpq released the low cost. Just looked at exact numbers... dell had a knee jerk reaction and dropped 35% on the cpq low cost 386 announcement.... then after a 3 week pull back started going up. like in a couple of days went down 35%. i'm not disagreeing with you on the 70% was the notebook since I bot a huge amt. of dell stk on this and remember excactly what the issues were.... but the 35% drop real quick was the cpq low cost... of course hp, ibm and dell all dropped on that... cpq went up on that so it wasn't a pc related everybody drops. I can post the exact facts if all that is needed.