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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Michael Burry who wrote (3482)	3/9/1998 10:37:00 AM
From: James Clarke	Read Replies (2) \| Respond to of 78568

A lot of value guys have had their heads handed to them shorting Dell in the last two years. When this one runs out of steam, it is not going to be pretty, but don't short this thing unless you can stomach another 30 point rise. You may be right in the long run, but as Keynes said "In the long run we're all dead."

To: Michael Burry who wrote (3482)	3/9/1998 10:03:00 PM
From: David Cathcart	Read Replies (1) \| Respond to of 78568

Mike, <<Dell's whole edge is its inventory management, which has allowed it to avoid the inventory problems of every single other PC manufacturer. It rarely gets the highest marks for quality, and just as rarely gets the marks for customer service. >> I read each issue of PC Magazine and Windows Magazine, cover to cover. Other magazines may judge differently, but those two have given Dell computers more awards than any other brand over the last two years. Presently, Windows Magazine has five Dell desktops on the "WinList" and only one Micron. For notebooks, the ratio is three to one. Dell has also been in the top category for service in every survey I've seen. On the personal level, people I know who have Dell's in their business swear by them. I have never owned a Dell computer or their stock. Over the last year, I have often thought about shorting the stock, and I have even made at least one failed attempt at a limit short order. Michael Dell stubbed his toe a few years ago with ironically poor management of memory chip inventory. I thought they were due for another stumble. There may be good reasons to short Dell, but they do make good computers. David