Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: David E. Taylor who wrote (34171)	3/12/1998 6:52:00 PM
From: Johnnie W.	Read Replies (2) \| Respond to of 176387

I heard the rumor from a friend whose friend works at Dell in Texas. I loaded up on Data General (DCN) last week. I called DCN and they will not confirm or deny the rumor. Trading in DCN is brisk and I look for an imminent takeover!

To: David E. Taylor who wrote (34171)	3/12/1998 9:15:00 PM
From: rudedog	Read Replies (2) \| Respond to of 176387

some data both from this thread and the cpq thread contradicts this position. please help me understand... 1) WSJ and others report that the excess CPQ inventory is in servers, not desktops 2) according to IDC (as copied in the cpq thread) CPQ has 35% of the Intel-based server market, Dell has 5.8% 3) The technology in the dell server line is identical to the cpq server line (except that cpq has rack mount models). All the products are based on pentium pro with 1M or 512K cache, models and features are very similar. I looked on both the cpq web site (see compaq.com ) and Dell site (see dell.com ). 4) Dell has been growing much faster than cpq in the server space. that is good for dell but bad for earnings growth in a server price war with the number one in that space. 5) The server business is both a high growth and high margin business for Dell, thus a slowdown here would be especially bad for earnings. I would think that if cpq gets very aggressive in a market where they sell 6 times as many units as Dell, if the products are very similar and use the same technology, then Dell will either have to cut price also, or lose business. What is wrong with this analysis? If this is right then we may see some rough road ahead... The Rudedog