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

To: SecularBull who wrote (37071)	4/8/1998 11:13:00 AM
From: Jim Patterson	Read Replies (3) \| Respond to of 176387

I am going to clarify why I am short DELL, Just for the record. 1) The growth rate of the PC industry slowing. 2) I don't think DELL has the support capacity NOW to sell at the next higher level. (Support agreements indicate they are doing something about this) 3) I think DELL's competition will cut their margins on hardware and try to make up those dollars on the service side of the contract, and other peripherals 4) I think sub $1500 machines are taking market share from above $1500 machines the market DELL is targeting. (This relates primarily it INTC's falling ASP problems and competition from AMD) 5) I think the PC markets overall ASP decline will eventually have an impact DELL and in turn effect Dells bottom line. 6) I don't think Dell can continue to meet or exceed ever rising expectations for more than 1-2 quarters to come in a very hostile PC market. 7) TA, I think the stock experienced a Climax Run of 25% in 7 weeks after a 270% one-year move. A top frequently occurs after this type of action. 8) The climax was caused by the announcement of a stock split. Dispite todays facination with slpits, this is still a toping indicator. 9) When Expectations are not met, there will be a rapid change in the markets opinion of where Dells stock should trade. This is not an invitation for argument and or discussion. This is only to clarify why I am a bear on the stock. Jim