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

To: Mohan Marette who wrote (44855)	5/27/1998 1:26:00 AM
From: Sr K	Respond to of 176387

<<I think DELL'S ASP went down about couple of hundred dollars in Q1 >> The earnings release said only $100. What now seems likely to me is that ASP was flat through early April, roughly 2 months. During the quiet period it may have dropped $300 so that for Q1 it averaged $100. That may explain why Dell has been slow to put on more puts/calls. The release made no mention of buybacks and the drop to 700 m from 706 m in diluted shares seems like mostly momentum from Q4 purchases (early Jan 1998). Only in the conf call did they say they bought back 10 m shares for 334 m in Q1. This was from option positions which are staggered and at deep discounts to today's pricing. IMO the explanation that cost savings paralleled the $100 drop in ASP allowing margins to expand to 7.78% does not tell the story of the shape of the ASP curve.