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

To: Chuzzlewit who wrote (44002)	5/21/1998 12:14:00 AM
From: NickSE	Read Replies (1) \| Respond to of 176387

Good morning Thought you might find the following interesting cbs.marketwatch.com However, Dell's gross margin strength amid the current hostile pricing environment only strengthens some analysts' opinion of the stock. Merrill Lynch's Lucianne Painter said, "Dell is in the strongest position versus its competitors to pass cost cuts along to consumers while maintaining profitability since their direct model doesn't require them to hold on to excess inventory." and to make it official: To: Michael D.Burke (28307 ) From: Lucretius Taurus Tuesday, May 19 1998 11:52PM ET Reply #28312 of 28339 (...............) What are your comments on DELL? I happen to be short that little bloated gem as well :) -Lucretius Regards, Caisson

To: Chuzzlewit who wrote (44002)	5/21/1998 7:55:00 AM
From: Fangorn	Respond to of 176387

CTC, Never argue with a cat. VBG eom

To: Chuzzlewit who wrote (44002)	5/21/1998 11:35:00 AM
From: jbn3	Read Replies (1) \| Respond to of 176387

Hey Cat, Can you explain to me why lower ASPs are automatically considered bad news? Because I am tres naive, I figured thusly (assuming for the moment that unit growth is static) 1. If it costs a corp $1000 to produce a product in January, and 2. If it can sell that product at $2000 and 3. If it costs the same corp only $500 to produce the same product in February (because of increased efficiencies and lowered component costs) and 4. If it then sells the same product for $1900 We have a decrease in ASP but an increase in margin and profit. Why is that considered bad? If one then changes the assumption that unit growth is not static but increasing, why is the decrease in ASP considered bad? Is this one of those "Historically, ... " precepts, that presupposes an increased or static component and production cost? Willing to learn, 3.