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

To: Andy Yamaguchi who wrote (33528)	3/10/1998 2:45:00 AM
From: Jon Markman	Respond to of 176387

The big institutions have been selling Compaq for at least two to three months. Volume very weak, sort of a slow leak. However I believe that the institutions are still underexposed to Dell. And as a result, despite the downgrades today, it seems the path of least resistance for Dell is back to new highs by option expiration this month. The regaining of ground could well be dramatic. Also a Seattle guy here. Hallways of our large tech firm are lined with boxes of both Dells and Compaqs. Dell seems to be the machine of choice on the desktop, while Compaqs rule the server rooms.

To: Andy Yamaguchi who wrote (33528)	3/10/1998 6:46:00 PM
From: K. M. Strickler	Respond to of 176387

AY, While DELL's trend reversed, I see no concrete reason due to the model that DELL uses. They are only ordering the inventory that is needed on an ongoing basis, so they are not overloaded with obsolete chips that they have to eat. If the orders aren't coming in, they aren't ordering chips. IMO, Intels problem come from the retail channel being jugged up and the makers have stopped ordering. Intel had to build the chips based on a forecast, as they aren't made 'overnight', so there were a bunch of 'wafers' that had to be 'cut' and packaged, and so the over inventory! I am not worried about Intel, they will just wait, and the chips will go. Look at it as an opportunity for Intel to get another chip into production, with the line idled by excess inventory! How about the i740 chip, or 1G processor chip! Maybe they could work on the next level of memory RDRAM. This is really an opportunity for Intel. I'm not sure that the 'institutions' necessarily got into DELL because their analysts have always played down DELL, IMHO! Regards, Ken