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

To: Boplicity who wrote (38404)	4/20/1998 12:04:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Good morning Greg. I don't know exactly what the Seagate upgrade presages. If we are looking at dd capacity being brought under control (i.e, we will no longer see overproduction of disk drives) and a firming in drive price what does that portend for Dell? That would certainly help mitigate the precipitous drop in component costs, but the larger question is how will that affect demand. Put another way, suppose prices stopped dropping for a few months, how would you expect corporate customers to behave? The erst-while bearish argument that dropping costs leads to decreasing gross profits is certainly weakened, but I never bought the original argument anyway. I suspect that if prices start to firm we may see a temporary increase in demand as corporate customers no longer see much virtue in putting off hardware purchases. On the other hand, the actual hardware is relatively small compared to the rest of the costs involved in a major hardware upgrade, so maybe this will not be an important issue. Any thoughts? TTFN, CTC

To: Boplicity who wrote (38404)	4/20/1998 12:10:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 176387

Get a load of this. CPQ named in shareholder suit. Greg and all: CPQ shareholders have filed a class action law suit for misleading them about the extend of the inventory problem,aka 'channel stuffing'. Hummmm...interesting and the plot thickens... Here is an excerpt. The law firm said the suit argues that these were short- term strategies of borrowing sales from future periods resulting in artificially inflated earnings. The suit charged that company officials used their inside knowledge to sell large numbers of shares at inflated prices. The complaint alleged that defendants sold nearly 2.5 million Compaq shares for proceeds of more than $120 million, according to the statement from the plaintiffs' law firm. dailynews.yahoo.com