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

To: hpeace who wrote (25766)	12/19/1997 1:10:00 PM
From: Jim Patterson	Read Replies (1) \| Respond to of 176387

Wow, You really know you stuff on PC cost of production and parts cost. How can I come back to this without sounding he said she said. DELL's current valuation assums huge growth going foward. CPQ is competing heavily and specificaly against DELL. DELL does not want to sell in the sub zero mkt. Sub Zero is the fastest growing PC segment and is canabalizing higher cost machines market. DELL may be seeing a unit growth slow down. These companies are dependent on 2 things for sucess, Growth in the end market, and declining componet cost. When markets slow, the stronges gain share and the weekest die. Looks like that is happening now. If there is a problem, which there may be or may not, The managements of these companies fail. The stock prices will colapse. As for the cost structure, My bet is that there is an industry slowdown and a price war. These are the two main contributors to dell's 70% stock drop last time it happened. Parts get cheeper fastest when there is a industry slowdown. That is where I am. Jim