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

To: Jim Patterson who wrote (37919)	4/15/1998 11:06:00 AM
From: SecularBull	Respond to of 176387

Jim P., I guess that tells you a little about what management thinks about the prospects for DELL shares???? Always a pleasure, LoD

To: Jim Patterson who wrote (37919)	4/19/1998 11:43:00 PM
From: jbn3	Read Replies (1) \| Respond to of 176387

re Personaly I think DELL is doing a debt deal to raise cash to buy back more stock. ... Most companies go public to raise cash to pay off longterm debt. Now it looks like mature companies are issuing debt to buy the stock back in. Jim P, As I have stated before, IMO DELL is selling debt to raise money to build and improve production facilities in Austin, China, Europe, and, it would seem logical, eventually in South America. Consider current long term interest rates together with DELL's current revenue, earnings and sales growth: if DELL continues to grow at only 1/4 of recent rates, it is relatively easy for DELL to derive a return on the capital investments made that far exceeds their costs. Bottom line: Provides very low cost, totally expensable increased production and growth capability while continuing stock buy-back programs. IMO, this is a very positive move, although the results may not become apparent until the new production facilities come on line. For instance, once DELL has its server production transferred to a factory which is newer and more efficient than even the Metric 12 facility, I think that you will see the following happen: 1) inventory levels will decrease even more from their industry low levels; 2) average order placement to product shipment time will decrease even further; 3) total number of inventory turns, in which DELL already leads the industry, will increase; This may well lead to other increased efficiencies in accounts payable , accounts receivable, and defect rate. Regards, 3.