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

To: hpeace who wrote (26430)	12/29/1997 4:15:00 PM
From: Jim Patterson	Read Replies (2) \| Respond to of 176387

Steve, My point is that Many companies have a net of 4-7 % Many companies have come out saying that Korea or athe AP is only 6% of revenue. Dell included. If...er..well we know that Korea is now 50% of what it used to be. Look at a chart of the curency vs US$. That means loosely translated that many companies have lost 3% perhaps a little more or a little less from the reigon. Dell included. When you quickly loose 3 % of revenue and you are working on a 4-7% net bottom line, That is where you will see the greatest $ corrolation to revenues. DELL included IMO, Not in your opinion. Lets go one step farther. Dell sells to companies that do business over there right ? What will happen to their cap ex plans when they see their Net go from 5% to 2% ? Is it posible that they put a temporary freez on them ? IMO Yes it is. Would this have an impact on the PC business ? IMO Yes. Your responce is probably that Dell is such a fantasticaly managed company that this will only have a minor less than 5 cent impact on EPS. IMO it will have a huge impact. It is not the direct impact od Korea on DELL that will hurt them the most. It is the indirect impact. This will not show up this quarter. It should show up in the may quarter. The stock should start to discount this 3-6 months in advance. BTW if the stock continues to rally big for the last 2 days of the year, some funds may decide to sell in Jan. The stock is being Jamed for EOY preformance IMO Jim