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

To: kemble s. matter who wrote (35847)	3/28/1998 1:11:00 AM
From: Paul van Wijk	Read Replies (1) \| Respond to of 176387

Kemble, >> Interesting post...the bottom line basically lies with who do >> you believe? I haven't had to think too hard. Sometimes I'm a little jealous on you because of your unprecedented optimism and faith in Dell's feature. In october/november I sometimes doubted your mind but let's face it; you were the big winner at the end by keeping your faith in Michael no matter what happened. I myself don't have that patience to see a stock go down (because of a turning momentum) and just wait until it recovers (especially with my larger holdings in my portfolio). It was Tom Kurlak that really makes me doubt. He predicted a drop of INTC twice in the last few quarters so it is hard for me to ignore his opinion. And when reading the article I have to admit that it makes sense what he says. It is true that the role of the PC is changing also because their is a strong trend to "thin-client" com- puting going on. (Citrix's Winframe & pICAsso, MSFT's hydra). On the other hand, the article was not specifically negative for Dell. I believe he is right about his view on the future of PC's. But there were also positive elements in what he said (workstations, servers). I also think, and almost nobody on Wallstreet seems to disagree these days (expect for a couple of brothers) that Dell is by far the most save bet to put your money in when investing in this specific sector). So who to believe; Michael or Tom. I decided to believe them both. Short-term I go for Tom Kurlak, medium to long term I go for Michael. Short-term I think - Market is expensive, - Expect momentum will decrease for the PC-sector, - There will sure be negative earning-surprises in the PC-sector in the next few quarters. - Dell will (as it did in the past) go down in sympathy when others have negative surprises (CPQ's warning is a good example) Long-term - Dell still has a perfect management - Dell still have a long way to go with their servers & workstations riding the succes of Windows NT - Dell still has a perfect business-model - Dell still very well positioned in the internet-arena So I sold half of my Dell-stock also because Dell is/was the largest holding in my portofolio. (Or let's say it in a more positive way; I decided to hold 50% of my Dell-shares). Another reason I sold half of my Dell-shares is because I'm raising cash to have money on the sideline for bargains (companies with blow-out quarters, announcements of share buy-back programs (bought INTC yesterday) or just a healthy correction in the next quarter). Bottomline, still bullish on Dell. And sure that on the long run you will be one of the big winners on Wallstreet. But as I said; I don't have your patience. Have a nice weekend, Paul