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

To: Mark Brown who wrote (35696)	3/26/1998 2:13:00 PM
From: MichaelW	Read Replies (2) \| Respond to of 176387

Craig Kaufman is really going after Dell. What Craig is saying contradicts what Dell is saying to their investors.

To: Mark Brown who wrote (35696)	3/26/1998 2:29:00 PM
From: Venkie	Read Replies (1) \| Respond to of 176387

I e-mailed them and said they look like fools and on a down day..Dell is up so thats what the market had to say about they're coverage. Some folks will not want to invest in they're firm for any reasons.

To: Mark Brown who wrote (35696)	3/26/1998 3:40:00 PM
From: SecularBull	Read Replies (2) \| Respond to of 176387

Dear Mr. Kaufman: (my answer to Mr. Kaufman's incompetent analysis at kbro.com ) Your analysis of DELL is lazy at best.ÿ You did not discuss DELL's worldwide growth, nor did you discuss the enterprise business at all.ÿ You grossly overstate DELL's competitors ability to prevent DELL from taking market share from them in all areas of DELL's business (which is more than just PCs I might add).ÿ Your analysis, as with that of many analysts and traders, is starts with the premise that you believe the stock to be overpriced based on recent performance.ÿ Then you seek to build your case for supporting that claim.ÿ I doubt that you had any objectivity in evaluating the merits of this company.ÿ Instead of researching the company itself from the bottom up, you have taken a top down approach.ÿ Along the way, you have made some pivotal assumptions about the company and the industry that are absolutely incorrect, and I address as follows: 1)ÿÿÿ There is not an over-supply of capacity in the industry, and therefore, your analogy about the memory chip makers is not relevant in discussing the future trends of PC demand. 2)ÿÿÿ DELL's growth prospects are not in tandem with the industry or its individual competitors.ÿ DELL has been on the radar screen of the competition for some time now, yet the company's market share percentage growth seems to continue to grow. 3)ÿÿÿ The competitors cannot procure components for less than DELL, especially when you consider the inventory models of the competitors vs. DELL.ÿ DELL has a clear advantage in J.I.T. inventory, and DELL remains very loyal to specific vendors in each component area, while the competition tends to mix vendors for, say, processors.ÿ Ask Intel what they think of your position. 4)ÿÿÿ If the competitors had better product power at their disposal, DELL would not be gobbling up the market the way it is.ÿ The competition is inefficient and too segmented to compete in the markets that DELL participates. 5)ÿÿÿ "We believe that the low priced PCs, not Dell's stated target market, will be good enough for general office productivity stations."ÿ If this were the case, DELL would not be gobbling up the market the way it is, again. 6)ÿÿÿ Oversupply of components does not hurt DELL.ÿ In fact DELL's inventory model allows it to realize and pass these savings onto customers much more quickly that the competition. 7)ÿÿÿ "IBM, CPQ and HP will not allow DELL to take an annualized run rate of $1.6 billion in operating profit from them in this environment."ÿ The competition doesn't have a choice.ÿ DELL's model is perfectly positioned to prevail in a "price war" that the competition knows they cannot win.ÿ Again, the current "price war" (channel purge) is only temporary. 8)ÿÿÿ "Given PC unit growth of 15%, a product mix shift towards the low end ($1000 PCs), and across the board price cuts, industry revenue growth will flatten and CPQ, IBM, HP, and DELL all can not reach their 30%+ growth objectives."ÿ Exactly, but DELL will do better than 30% growth.ÿ DELL will let CPQ and HWP duke it out over the $1,000 PC, while it continues to skim the cream- the corporate and experienced user business.ÿ Sub-$1,000 PCs are attractive to first time users, period. 9)ÿÿÿ DELL is not a mature business in a mature industry.ÿ DELL continues to grow at an exponential rate to the competition, and the worldwide market as a whole continues to grow at a healthy pace.ÿ The "price war" will end as soon as the competition returns to their respective supply/demand equilibrium.ÿ It is DELL's insistence to stay out of the sub-$1,000 PC business that has insulated DELL from the majority of the effects of pricing pressure. Mr. Kaufman, you do a tremendous disservice to your clients.ÿ You might try reading DELL's Annual Report the next time around, before you decide to speak about companies you know very little about. Aren't you surprised that you're the first to place a "sell" on DELL in years.ÿ I guess you're trying with a hip shot to bring down one of the mightiest beasts on the field, and make a name for your firm. I would suggest sticking to making money, instead of running from it.

To: Mark Brown who wrote (35696)	3/26/1998 5:46:00 PM
From: Craig Lieberman	Read Replies (1) \| Respond to of 176387

read the report written by our President and CEO, Craig Kaufman Makes me ashamed to have the same first name.... This guy is saying... PCs are commodity products... same stuff we see on the threads. He has totally missed the distribution advantages that DELL continues to have due to the lack of channel partners. They have cut out the middleman... This means that DELL reaps the middleman profit every time. If CPQ or HP or IBM sells their products direct at prices cheaper than their channel partners, then the channel partners would be undercut and abandon them. This can't happen and keep the channel happy. Therefore, CPQ, HP and IBM CAN't sell as cheaply as DELL. They would ruin the relationships with CompUSA, etc. DELL can continue to either keep their price just under the Channel price for PCs and get that extra 10 to 30% profit in their pocket that CPQ can't take, or CUT the price and their competitors throats. looks good either way for DELL. I prefer keeping most of the products and keeping price pressure on the competitors so DELL can steal market share. When you have the price and DISTRIBUTION advantage, you OWN the market. Just ask WALLMART. Craig.. (not the bone-head at Kaufman) Lieberman