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 Bear Thread -- Ignore unavailable to you. Want to Upgrade?

To: Doug Larson who wrote (816)	5/23/1998 5:49:00 PM
From: jjs_ynot	Respond to of 2578

These type of operations are springing up in various places. The technology to assemble a box is not overwhelming. It is the order flow, quality and inventory control that need to be superlative. Whether Ingram Micro can meet these demands only time will tell.

To: Doug Larson who wrote (816)	5/25/1998 10:35:00 AM
From: Mark Myword	Respond to of 2578

>>> Does anyone think that Ingram Micro could eventually be trouble for Dell ? <<<< Doug - yes , I for one think that Dell will revisit the 40s or 50s very soon , once the current froth leaves the market. The next big leg down will hit Dell hard , as people open their eyes and see... 1) Dell basically sells a commodity for a price that is 10 to 15% higher than their competition 2) The multiple is absurd , given that growth in this sector will be difficult, due to saturation and increasing competition , and 3) The recent upgrade phenomenon is dying out , and few people (or companies) will shell out $2,000 to go from a 300 mh to a 400 mh; the speed gain is almost imperceptible, and when easy money stops flowing , Dell's orders will die off to a steady level. I see the company doing a good , solid business , but the growth story will fade out and the stock will be at half of today's price , or lower.

To: Doug Larson who wrote (816)	5/26/1998 5:51:00 PM
From: Andy Turk	Respond to of 2578

On Ingram's BTO plant in Memphis... It's an interesting idea. If they execute well, I think it would generate some competition for Dell. On the other hand, I suspect it's more efficient for the PC suppliers (e.g., Compaq, IBM, etc.) to set up their own BTO rather than rely on Ingram. I think there's a big move to reduce the amount of product that moves through the channel because of the margin situation. Ingram could get left out in the cold if they aren't careful. IMHO, instead of Ingram building a plant for BTO PCs, they should do BTO software. Not that software changes from customer to customer, but Ingram could consolidate a number of the smaller fulfilment houses that build the cheesy software boxes and stuff them with a single CD and a bunch of cardboard.