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

To: David E. Taylor who wrote (33161)	3/8/1998 11:24:00 PM
From: John Carpenter	Read Replies (2) \| Respond to of 176387

A sincere thanks. Apparently, the market is correct in assigning a relatively high PE to DELL. I suspect that any short term weakness in DELL shares tomorrow morning will be met by buyers once again. I think a case has been made as to why these shares trade where they do.

To: David E. Taylor who wrote (33161)	3/9/1998 12:04:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

David, you've presented an interesting analysis. While it is undoubtedly true that Compaq must reduce prices to move its inventory, it also creates a huge dilemma for them. If for example, a considerable portion is in the form of pentium pro based machines, what do they do about the newer pentium IIs? If they are pricing the old machines aggressively, what impact will this have on the market for their newer machines? Put another way, by slashing prices on the pentium pros they will be undercutting their own pentium II market. Perhaps a better approach would be to simply replace the old pentium pro chips and mother boards with pentium II's, and surplus out the boards. Thus, they would take a one-time hit, but would avoid cascading inventory problems. Any thoughts? Regards, Paul