Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: ROBJAZ who wrote (32856)	3/7/1998 12:17:00 AM
From: Richard Wolowski	Respond to of 176387

Dell buyers are generally not first time computer owners. "Discounts" which will no doubt be in the offing from CPQ are really not that. Instead they are clearing out what they admit, are obsolete inventory that has been allowed to accumulate and multiply in a panic move by CPQ management to not look as bad as they really were (this past quarter). I believe, those persons or corporations who were planning to buy a Dell will continue to do so despite the so called discounts others will be offering. Dell, not ever having to clear out old stock does not need to discount. Remember what they sell today came in as parts a week ago. If anything, when the dust settles after a weekend of heavy discussions by analysts, (armchair or professional) Dell will be proclaimed the future KING OF THE HILL. A point well taken from someone's earlier post is that corporations (Dell's principal client) will buy cutting edge Dells rather then obsolete 200 or 233 mghz. Compaqs. There may be some selling pressure on Dell for a few trading sessions, but that will be all. They will go right back to where they belong. Another point to ponder over the weekend. Why did Compaq wait until Friday after trading hours to come clean? Insiders and analysts kind to CPQ assuredly knew what was coming. Did they unload while buttressing up the price with their continued buy recommendations? Remember, the first signs of something dreadfully wrong with Compaq began dribbling out early in the past week. CPQ's less then forthright dribble type announcements along with their phony sales reports for the quarter, will haunt them forever. I'll stay long with Dell even if I have to ride in a storm for a week or so.