Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Chuzzlewit who wrote (42130)	5/14/1998 6:00:00 PM
From: Paul Merriwether	Read Replies (2) \| Respond to of 176387

<< You have responded with a series of non-sequitors (not to mention consistently misspelling the word "fundamental" WHICH IS DRIVING ME NUTS!!!). >> Chuzzie two minor points: 1> Your correction of someone's spellings IS a non sequitur(). Therefore, yor are weakening your right to chide someone for their irrelevant reply to the original argument. 2> & () Your "misspelling the word 'non sequitur'" is "DRIVING ME NUTS!!!" ;) best -P p.s. I would be a buyer of dell @ 30. Its a great company! :)

To: Chuzzlewit who wrote (42130)	5/14/1998 7:09:00 PM
From: Lucretius	Respond to of 176387

sorry, I've gotten in a bad habit of abrev. and saying fundi's. Slip of the key. I'll be sure and speale correctly in the future. (ggg) My answer to you and meat will take some time. Don't have that today, but I'll get back to you tomorrow.

To: Chuzzlewit who wrote (42130)	5/16/1998 11:33:00 AM
From: Lucretius	Respond to of 176387

<<<Lucretius, rather than merely echo the comments made by Meathead -- which by the way are all based on fact, not conjecture, I'd like to make a few additional points:>>> That was an interesting stmt, considering what you posted? <<<You say "Your ratios are nice, but that is a backwards look". Well, that's not quite correct. Those ratios tell you how the business operates on a nuts and bolts basis. Those ratios have nothing to do with the price of the stock. They are intended to demonstrate the efficiency with which Dell deploys its resources. That's an example of what I mean by a company specific analysis. Show me another manufacturer/assembler with an asset turnover of 4! Do you even have any concept of how astounding that number is? Do you know what that number implies? I doubt it.>>> Gee, I don't understand numbers, period? I just buy and sell things if my kid tells me to. (I'm not going to respond to stmts like above. I you want to rephrase it, I'll address it) <<<Yes, Dell is devoted to the high end. Jim Kelley and Meathead have exhaustively analyzed the wisdom of that decision. At this point I am absolutely convinced it was the wisest choice Dell could make. The economics (here we go with fundamental analysis again) indicated that there is precious little, if any, profit in this market. How else do you explain the precipitous drop in CPQ's gross margin (from around 27% to 18%)? >>> can't argue w/ Jim and Meat, I guess, on a matter of opinion. ya got me there on that one? You're right, there is very little profit in the low-end, but THAT IS WHERE THE BUSINESS IS GOING!!!!!!!! Demand is slowing and will slow further in the high end. Margins will be and are being squeezed throughout the industry. Being in the PC business is a losing proposition if you ask me, and will only get worse. Like you said there is very little profit in the PC business, and it will only get worse. What are the barriers to entry in selling boxes on-line???? NONE!!! Competition will kill these companies. Look at the DRAM and semi manufacturers, even INTC is feeling the pain, PC's are headed the same way. They're just a little farther down the food chain. To me DELL is the INTC of the PC bus, so like them, you'll feel the pain of competiton and glut of capacity, last, but you'll feel it. To think anything different is pure fanatsy. <<<<You say "Asia is getting worse (globally economicly speaking)", but fail to show how this will impact Dell. I should point out that Dell's Asian exposure is largely as a buyer of those cheaper goods and should benefit. Companies like Applied Materials, on the other hand, are hurt because Asia is a major customer of their goods. But if you think Asia is getting worse, why are you investing in Japan?>>>> All business will be affected by the slowdown in Asia, as the problems work their way thru the econ. food chain. US co's that do bus in Asia will slow, they will buy fewer PC's from DELL (then there's also the yr 2000 prob which will take alot away from co's PC budgets, but that's a whole other can of worms). It is a complicated economic chain reaction. As for why I am investing in Japan, that really has nothing to do w/ DELL. I suggest you vist the Japan thread and read up, then go look at a chart of the Nikkei. Then, we can discuss on the Japan thread why I have begun to build a position there and not here. Hope that helps. Thanks for all those facts. I had real trouble? -Lucretius