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

To: Jim Patterson who wrote (38959)	4/26/1998 12:29:00 AM
From: K. M. Strickler	Read Replies (1) \| Respond to of 176387

JP, Actually, the JIT-BTO model DID NOT FAIL, as in reality it CANNOT FAIL. If inventory is only accepted into the company AFTER the finished product is previously SOLD, there is no liability. It is the PERCEPTION that is the problem. The stockholders get nervous and a 'buying' opportunity is presented to those who feel that the 'fundamentals' of the company are 'sound'. IMHO, DELLs 'fundamentals' are 'sound', and I expect the stock to go 'up' and 'down' as investors 'buy' and 'sell' the stock for whatever reasons they do. I 'trade' in the stock to others that seem to be performing, and then back to DELL when I think that DELLs 'cycle' is about to rise. For instance, I went to LU for a couple of weeks, while DELL was 'wandering', and then increased my DELL holding 5% on return. I thought this was OK. Recently, I have been diversifying my holdings into a couple of other stocks, GNET - because of the relationship with SI, and GTW - because they have been added to the S&P 500 index, and that alone will bring money into GTW. I will continue to hold DELL as long as the stock performs. You are correct that DELL 'could' retreat to one times sales, but I see no indication that is about to happen, but I could be wrong. What do you see that might allow this to happen, and what would it take to trigger this event? 'Tis true, there are 18 months left, and no doubt the ~26,000% will change, but it could as easily go 'up' as 'down'. (JMHO) If you look at the 'historical' data, which is all we really have to look at, I see nothing to indicate a change in direction, but the rapid rate of the past may be more tempered as the industry matures. One more point to consider in the new Cash Conversion Cycle that DELL uses enhances DELLs cash position. I believe that as investors come to realize the advantage of this, 'turnover' of stock may slow, and that might put some 'upward' pressure on the stock. We all would then look at DELL and comment on how 'wise' he was to 'buy back' the stock at a reduced value. Needless to say, there will be an abundance of 'chest thumping' and 'I told you so' to fill this thread for days. BTW, I am looking for the 'chink' in DELLs JIT-BTO model, but as of yet, I see nothing that I can put my finger on. This model may well be applied to many industries. If it is not taught in college, IMHO, it will be! Regards, Ken