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

To: Rene Madsen who wrote (33418)	3/9/1998 6:40:00 PM
From: jim kelley	Read Replies (1) \| Respond to of 176387

Rene, There are a couple of ways to look at CPQ's predictament. First, you could deduct the channel stuffing revenues from last quarters profits to arrive at what the actually sold through to the end customer. In which case their revenues and profits last quarter are going to be a lot lower than what they reported. If this is the case then their actual P/E is much higher than 23 for last quarter. Second , you could say that they will have no year over year growth in revenue for the current quarter and that they are profits are in serious decline because they expect breakeven this year as opposed to last year. Again their P/E is going to be very much higher than 23 for this quarter. I suspect that DLJ upgraded CPQ so they could dump their holdings. They downgrade DELL so they can buy it more cheaply. Later they correct their ratings to reflect the actual situation in the market. In short it looks like they are trying to manipulate the market for their own internal reasons. Only, then do their recommendations make any sense. Regards, jim kelley