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

To: SecularBull who wrote (36343)	4/2/1998 11:12:00 AM
From: Peter W	Read Replies (6) \| Respond to of 176387

All, from briefing.com ... Dell Computer Corp. (DELL) 68 7/16 -1/16: Piper Jaffray initiates coverage of direct marketer of PCs with "strong buy" and a 12-month price target of $100; expects unit growth of 15% sequentially and 64% year-over-year to 1.6 mln in Q1; transition problems at Compaq should enable DELL to capitalize and pick-up market share; also, revenue and earnings trajectory to be sustained by shift in product mix to server/workstations, allowing gross margins to stabilize from price pressures elsewhere..... Compare with ... Compaq Computer Corp. (CPQ) 25 5/8 -1/8: Piper Jaffray initiates coverage of computer maker with "neutral" and a 12-month price target of $38; sees no sequential unit growth until later this year, while inventory build-up will results in market share loss; inability to smoothly transition to 100 MHz platform will weaken server/workstation offerings; and the integration of Digital Equipment carries risk..... Gateway 2000 Inc. (GTW) 46 9/16 -1/8: Piper Jaffray initiates coverage of direct marketer of PCs with "neutral" and a 12-month price target of $50; thinks price compression in PC market could hurt company as well as retrenchment from the large corporate market limits product mix enrichment; also, stock is trading at upper end of historical range as measured by its relative and absolute P/E multiple.....

To: SecularBull who wrote (36343)	4/2/1998 12:26:00 PM
From: JRI	Read Replies (1) \| Respond to of 176387

(Thnx to JuJu1015, K.M. Strickler, & LongonDell for your responses) Concerning your question on marketshare: Based on my limited knowledge of the history of Dell (limited compared to some of you guys!), it appears that Dell has frequently (and consistently?) been able to take away marketshare from PC vendors (for many quarters now, in fast growth, and semi-fast growth markets). I am unsure if Dell will take marketshare solely from CPQ in the near future (or perhaps even IBM- another post mentioned that they too had been stuffing), but it seems highly likely that this trend (taking away marketshare) will continue, or even accelerate. It appears clear that Compaq is scrambling right now, and will probably lose a little marketshare. How much probably depends, as you correctly mention, as to how fast they can get their inventory problems in order.. The Dec acquisition, I think, will be a real distraction for CPQ's senior management this year. I'm so glad that Dell continues to focus, focus, focus. Dell has done a great job diversifying into workstations, servers, and Asia/Europe over the past couple of years.....I think these areas will carry the company higher over the next couple of years, along with a Ok-good US PC market. I think Piper Jaffray announcement was a great summation of my view of the next12 mos., although I think the stock will hit 100 within 6-9 mos. By the way, LU is simply amazing, isnt it.....Would call it a gorilla....Dont think one can go too wrong owning LU, or CSCO over the next couple years....