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

To: gc who wrote (33413)	3/9/1998 6:13:00 PM
From: freeus	Read Replies (4) \| Respond to of 176387

None of us can figure the market out. But... the usual correct response is.....when we have our annual meeting, months from now, where do you think the price of Dell will be? Freeus You can tell how ridiculous "the market" is when Compaq, which issued warnings, goes down less than Dell, which had a great quarter, and no warning.

To: gc who wrote (33413)	3/9/1998 6:26:00 PM
From: Chuzzlewit	Respond to of 176387

gc, can you post the highlights when you get the report? I'm sure it will be appreciated by all (except the bears). It's really very interesting the way the market has reacted. It seems that there is significant fear that Compaq's problems may spread to other box manufacturers, and I guess that some big investors were getting nervous about the cc. Late last summer I recall Jim Kelley, Meathead, JBN3, and I (and some others whose names I can't recall right now -- no disrespect intended) were specifically predicting two outcomes from the change in Compaq's business plan. First, we were unanimous in predicting that Compaq's gross margin would come under tremendous pressure as a result of inventory bloat and selling cheap consumer machines (sub-zeros). Second, we predicted that the build to order model was intrinsically unsound because it would inevitably lead to inventory bloat at the high end. Apparently, both of these predictions have been borne out. In addition, I predicted (although the others may have concurred as well) that Compaq's quality would diminish. I have no idea of how Compaq's quality has been affected by the corporate BTO model. Does anyone out there know? Regards, Paul