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

To: Gold Beach who wrote (27879)	1/18/1998 7:21:00 PM
From: BUYandHOLD	Read Replies (1) \| Respond to of 176388

Don I am a subscriber to Worth, a great magazine. Now and then though, their contributors miss the ball. Check out advice given about DELL in 6/97. Thankfully I ignored it and made myself a little bundle-like all of you(almost 100%). Incidentally AOL,CPQ etc were on the "bad" list. Checkout who was on the "good" list..Can you say Columbia?...my 2 cents. worth.com Charles.

To: Gold Beach who wrote (27879)	1/18/1998 8:15:00 PM
From: Meathead	Read Replies (2) \| Respond to of 176388

Donald - being a long time reader of WORTH, I have found the 10 stocks to buy/avoid list record spotty at best. It, like anything else is just one/two analysts opinion. There is no depth behind the recommendations either (face it, there are 20 buy/sell recommendations on 1 page) so we really have no idea as to what Romick's understanding of the PC business really is. The tip off should be someone making recommendations on Boston Chicken, Olympic financial, Dell and several other dissimilar companies all in the same breath. Hmmm, how much can any one guy actually understand about so many different industries?? They basically use rudimental investment guidelines to make valuation calls. The reasoning for avoidance is hardly new or insightful. 1. Priced at 36 times earnings way too high for what's becoming a commodity business. Yep, Dell has a high PE. Here's why... eb-mag.com Dataquest compares Dell's build-to-order strategy with industry milestones like the introduction of the IBM PC in 1985. They go so far as to call it the "third wave of historical industry changes." That's a pretty BOLD statement! It's not about the box (commodity), it's about having the most efficient PC delivery system. One reason the PE is so high is that smart money knows Dell's business model can NOT be copied successfully. 2. Looming slowdown in PC sales. This is stupid... I loose respect for analysts who make blanket statements like this... like Bill Fleckenstien. Let's see if we can go back and find a year where there have'nt been hundreds of analysts saying the same thing. Here's an interesting tidbit... Major corporations have been holding off purchasing/upgrading their servers until Intel's 100Mhz BX arrives in systems sometime in Q2. There is currently a tremendous amount of latent pressure here. 3. Increasing price competition. Keen observation<ggg>. Who is the price leader and has the ability to undercut everyone? Evidence shows that this will accelerate industry consolidation and Dell will benefit. The bottom line is: 1. Technological advancements are increasing ever more rapidly demanding the replacement cycle continue, i.e. PC sales are not going to slow. 2. Dell's business model is unique, built from the ground up, and next to impossible to duplicate by any major or minor player. Those who think anyone can duplicate Dell's model (all you need is a phone right?<ggg>) has not done any research and is playing with dumb money. cheers MEATHEAD

To: Gold Beach who wrote (27879)	1/18/1998 8:59:00 PM
From: Mohan Marette	Respond to of 176388

Don, this guy Romick is repeating what the doom-sayers were crowing about,obviously the 'market' doesn't seem to agree.Thanks for filling us all about it. I have a sneaky suspicion he will be proven wrong if we haven't already.