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

To: Jim Patterson who wrote (38879)	4/24/1998 1:12:00 PM
From: Mohan Marette	Read Replies (2) \| Respond to of 176387

Oh yeah the High Tech sector is doomed,NOT! Jim: Here is a bit of news I found very interesting. Source: Bloomberg. For Private use only. U.S. Economy: West Leads U.S. as Tech Boom Spreads By Sam Zuckerman Pasadena, California: Technology is transforming the West into the fastest growing region in the United States. An explosion of technology-based industries from Seattle to Denver to Albuquerque to Silicon Valley propelled job growth in the 13 western states of 3.7 percent in the 12 months ended in February. Nationwide, during that period, the vibrant economy produced by comparison a 2.6 percent increase in payrolls. Nowhere is the boom more visible than in California. Computer hardware and software, the Internet, biotechnology, entertainment and telecommunications have led the Golden State back from the punishing recession of the early 1990s. ''Our recovery was led by the future,'' said Stephen Levy, director of the Center for the Continuing Study of the California Economy. ''These are the fastest growing industries in the world, embodying technology and information.''

To: Jim Patterson who wrote (38879)	4/24/1998 4:43:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Jim, thanks for your reprise of GTW's results. It is clear that Gateway made tremendous strides from where it had been. As many of us on this thread said before, the key to making money in this business is tight inventory control, and Gateway seems to have figured out how to significantly improve their inventory controls. Even so, GTW has room for improvement which will be reflected in improving margins. The decrease in ASPs had been anticipated, but my bet is that Dell won't see as much of a decrease in ASPs because of its increasing emphasis on servers and notebooks. While Dell doesn't need to improve margins to substantially improve profits I am certain that it too has been examining its operations with an eye to doing just that. Your report confirms what many of us have been saying for some time. The way to make money in this market is to adopt JIT manufacturing and jettison retail channels. Just as mom and pop groceries gave way to supermarkets, so too will selling power desktops through retail chains. And just as with supermarkets, the profit dynamic will depend on rapid inventory turns. If you need graphic proof of this assertion contrast GTW CPQ and IBM. What I can't understand is given the content of your report, how can you still be bearish concerning Dell's business? TTFN, CTC