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

To: Sig who wrote (34867)	3/19/1998 1:30:00 AM
From: qpd	Respond to of 176387

Cash-King Portfolio Report by Rob Landley fool.com Some points from an excellent article on DELL "For proof of the effectiveness of this (DELL business model) approach, the PC industry -- in fact, the entire technology industry -- is restructuring to copy Dell's approach to sales. You see, Dell is much better at just-in-time manufacturing than any of its competitors, by a long shot. I'd also like to point out that Dell is one of the first businesses that is actually benefiting in a big way from this "Web commerce" thing we keep hearing so much about (eCommerce or netSales or DigiDelivery or whatever they're calling it at all those Internet conferences these days). Now Al, I do agree that Dell can't keep up the pace of its current expansion forever. Eventually it's going to run out of competitors to steal market share from, at which point it will have to be content to grow at the same rate as the entire computer industry. But in that case: a) it'll be #1 in its industry, definitely a Cash-King plus; b) the 20% or so that the computer industry grows each year isn't bad, especially when you've got plenty of cash left over to spend on stock buybacks; c) as it grows, it can begin offering new, "lighter" technology products -- it is already pushing hard into higher-margin servers and, who knows, it may get into more software development someday; and d) if Dell doubles three more times before it runs out of competition, it will have proffered investors greater returns than we expect to get from Coke in the next decade. To my eye, Dell is the best kind of Cash King -- one that's still in its "rapid growth" stage, with no market saturation concerns in sight. Its greatest challenge is getting supply up as fast as possible to meet the ferocious demand around the world. That's a nice challenge to face. And until that demand really slackens, I expect Dell to -- in the words of Bob Dylan -- "Keep on keepin' on, like a bird that flew." It may even outsoar our five present CK stocks over the next ten years. And, yep, its gross margins may even steadily improve from year to year."

To: Sig who wrote (34867)	3/19/1998 7:52:00 AM
From: emil	Read Replies (2) \| Respond to of 176387

Looks like a Dell Computer clip will be on CNBC today. They are highlighting S & P top performers (I saw the 30 sec sond byte). As the announcer spoke to tell watchers what is coming up, dell computers was the only company shone in the video portion... I imagine the company will get some attention today. If I were Micheal Dell, I would not vote to split a stock if my company's growth was slowing....? Dell going-nowhere, Doubt it.