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

To: Paul van Wijk who wrote (27313)	1/10/1998 7:34:00 AM
From: Koen Ameloot	Read Replies (4) \| Respond to of 176387

Hello everybody, I've been lurking on this thread for almost a year, now the time has come to add something myself. I'm doing this because I'm getting tired of people who post "information" without doing a little research & verification and than they try to win a verbal battle based on that non-information. Here is an example : Price differences between DELL & CPQ. The numbers Meathead gives can easily be verified, so why wasting time trying to contradict him. For those who are interested, here is the situation in Belgium. Prices are based on the latest Computer Company pricelist. (one of the larger resellers over here) The Presario 4830 currently is the most powerful consumer offering from Compaq (No 300 Mhz yet and no regional Compaq website) Prices DELL : 103500 BEF (and a more powerfull configuration) Compaq : 110644 BEF Dell (can be found at www.dell.be) Dimension XPS D266 MT 266 Mhz Pentium II / 512kB cache 64 MB SDRAM AGP Matrox Millennium II with 8MB WRAM Dell D1226-H 19" monitor (VIS 17.9") 8,4GB UltraDMA/33 Hard Drive 14-32 x CD-ROM Drive AWE 64 Sound ACS 295 Speakers with Subwoofer Win95 --- Office SBE 97 US Robotics 56K Internal Modem Iomega Zip Drive Compaq (from Computer Company / jan 98) Presario 4830 MT 266 Mhz Pentium II / 512kB cache 64 MB SDRAM ATI Rage Pro 3D Graphics, 4 MB (no other options) 17" monitor 6,5GB Hard Drive 24 x CD-ROM Drive 16 Bit Stereo with Dolby Digital and JBL Vmax Win95 --- No Office 97, but MS Works and some games No modem No Zip Drive Intel Video Phone And now for something completely different! I feel very comfortable with DELL ignoring the sub-1K market (for the time being at least). "That's a pretty decent computer. It doesn't do everything the high-end system does...but if what you want is something for the kid's room to plug into the Internet, it's a nice product for $799," said H-P's McKinney. "Prices will continue to edge downward as long as the entry-level model does what people want." Those sub-1K boxes are targeted to people who realy don't care about the technical specifications (quality) of their PC, they just want it as cheap as possible. So, can somebody explain to me what will happen with those $999s when the $799s are avalaible? I think that once they are produced and yet another cheaper model becomes available those $999s will be ignored by buyers looking for cheap value. Who will lose money on them, the producer or the reseller? Currently I'm long on DELL & CPQ, but I'm thinking of selling part of my CPQ and adding to my DELL-position because : 1. since October CPQ-stock is lacking strength on most days the market did well (compared to DELL) 2. by the end of this month the number of shares will double, and I'm afraid that under the current market conditions this will be an excuse for people to sell a part of their position. 3. Earnings were ignored last Q, this quarter will probably be good (Q1/98=0.84), but what will happen when people realize that Q2/98 will be lower at 0.72) (DELL Q1/98 = 0.75, Q2/98 = 0.77) Those are the Mean Estimates found at Morningstar. 4. Next Q there will be no holiday sales, so less sub-1Ks. Any input is appreciated According to Yahoo SK ignored the sell-off in the US. Next week will be important as the numbers start coming out. We will have the facts under our noses. :) TIA and good luck to all, Koen.