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

To: Lucretius who wrote (42563)	5/16/1998 12:01:00 PM
From: Jorge	Respond to of 176387

Lucrectious....Ok, so you went short...I'm curious what price are you going to cover? Regards, George

To: Lucretius who wrote (42563)	5/16/1998 12:11:00 PM
From: Jorge	Respond to of 176387

Lucretious....I'm going to give you some good advice...Cover quick...Go long..It's not a bad point to buy....You'll double your money before the end of '98....Then re-evaluate if you should still be long.......Best advice you'll get all day. Regards, George

To: Lucretius who wrote (42563)	5/16/1998 4:21:00 PM
From: gc	Respond to of 176387

I do see the yearly slow down in these company. But, how come the stock price continued to rise year after year? I guess too much money out there.

To: Lucretius who wrote (42563)	5/16/1998 8:36:00 PM
From: Andy Turk	Respond to of 176387

OK, I'll take Lucretius' bait... He said: "DELL sells a commodity. You can buy it from anybody. Only the price matters." I think that's oversimplifying the situation. There are differences between PC products that customers prefer. Dell is incorporating those differences into its products and is also making itself an easier vendor to deal with. This builds brand awareness that helps separate high-end products from the rest of the pack. Your analysis seems to be predicated on the assumption that Dell is a low cost provider, and if they can't continue to be a low cost provider then their business is shot. I think that argument misses the point. The real issue here isn't whether Dell's historical business model will continue to support the kind of growth we want, but rather the strong possibility that the PC market has bifurcated. I.e. Dell is moving away from the low-cost-provider-in-a-larger-market position into the driver's seat of low-end workstation market. As an illustration, chip companies used to have product mixes that included proprietary designs, standard chips and custom chips. Intel, for instance, used to sell both RAM chips and proprietary designs. But the competition got very intense for RAM and Intel got out of that business. I think it would have hurt the company to try to win the DRAM battle as well as the microprocessor battle. Intel chose wisely and has done pretty well. I think Dell is making a similar choice as we speak by getting out of the $1K PC business. As long as Intel churns the PC market by spitting out improved chips every three months, I think Dell's direct BTO model will be a huge strength. As many have said, Dell doesn't have to sit on inventory that rots in the warehouse. The other thing that Dell avoids is paying the channel. Business customers don't need what the channel offers anyway. In my mind, Dell will continue to see higher margins because: 1. It's inventory doesn't rot; 2. It doesn't have to pay the channel; and 3. It sells to customers who aren't as price sensitive (as consumers) This is basic stuff, but it does lead to cash. Andy PS. Yep, I'm long on DELL, and I bought more late yesterday afternoon. :-)

To: Lucretius who wrote (42563)	5/17/1998 3:03:00 PM
From: jbn3	Respond to of 176387

re ... DELL has the a greater mkt cap right now than Boeing..... enough said. I was unaware that Boeing was the standard by which the market measures market cap. But since you proffer it... Which of the two companies (Boeing and DELL) has better annual sales growth rate annual earnings growth rate earnings per employee ROI ROA prospects for continued growth better efficiency better cash conversion cycle Shall I go on? Naively, 3. (PS. per your original question re CPQ, HWP, IBM: now compare DELL stats for the same period... Is it possible that one of those companies is winning at the expense of the others?)