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

To: Jim Patterson who wrote (38894)	4/24/1998 2:35:00 PM
From: Venkie	Read Replies (1) \| Respond to of 176387

Jim..Dell is the stock of the decade..Just think if you had went long when you started..You could have been a dellionare.. Naz down over 20 and dell holding pretty good..My yuri is kicking some bootie..plcm even up..spaz stuck in the middle

To: Jim Patterson who wrote (38894)	4/24/1998 2:41:00 PM
From: Sig	Read Replies (1) \| Respond to of 176387

Jim: <<<<I think GTW has some one from DELL showing them how to do it>>> If you look at Loughead(Lockheed), Martin, and Boeing and Northrop you will find that all these people worked/with/for each other at one time or another before starting their own companies. The same thing happens today in tech industry, it don't mean they are enemies, good for US companies to share ideas,as we sometimes forget that the Asian companies (Toshiba, Nec)are real competitors to worry about also. <<<< DELL keeps squeezing better and better resultl through better and better inventory management. (Sales growth and all of that too) It is the Inventory situation that drives hardly believable increases in efficiency. Does this imply that the rest of their cost structure is fairly static? and if it is, then how much of a falloff in unit growth or revenue growth would be required for the company to drop to a net loss?>>>>>>>> True that Dell works all the time on inventory and cost reduction until further improvement will be difficult, but true growth will come from the output of those three new factories being built. I don't know yet what they plan to make, but it will incorporate the latest and 'hottest' components available.Any fall-off in unit growth for existing products will be overcome by growth in new areas. They have stated that they are really pushing their latest notebooks, so expect good growth in that area. Sig

To: Jim Patterson who wrote (38894)	4/24/1998 5:18:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Jim, this is a fairly simple question to answer. The key is to look at revenues per segment. I am assuming that ASP is tied to costs, and thus gross margins are constant. So, in order for the gross profit to remain the same we would have the following relationship: n = 1/(1-r) where n = the decimalized increase in units sold where r = the decimalized reduction in ASP So, for example, a 10% reduction in ASP would require an 11.1% increase in units sold. TTFN, CTC