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

To: K. M. Strickler who wrote (36613)	4/3/1998 8:40:00 PM
From: David Harker	Respond to of 176387

CPQ/IBM/HWP ganging up on DELL... ...is silly. All you who think this may happen are wrong, IMHO. I work at IBM, and while I can't speak for the senior management, there are some commonly known facts inside of IBM. One of those facts is that the management of each IBM division must annually go before the corporate mgmt and justify why the corp. should invest money in their division. Each division's mgmt is judged (and has bonuses paid - or not paid) based on their ability to return CASH to the corporation. I'm in the AS/400 division, and know for a fact that the better we do financially, as a division, the better our chances of keeping jobs (thru getting a development budget from the corp. that is large enough to pay our salaries). So, I highly doubt IBM's PC division is interested in "burning cash" just to gain market share. The top management of that division would be committing career suicide if they tried. Investments by the corporation in ANY division are very carefully considered to ensure that the return of CASH to the corporation, from each division, will be as high as possible. Market share is vital, esp. in software, but not at the expense of losing major chunks of the corporate $$$$. Again, I can't speak for IBM in a official manner - but think about it - this is common sense. This is a major reason why Gerstner has moved IBM stock from the $40's to the $100's in a few years. I'll bet this is true for any well-run corporation...