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

To: Mark Brown who wrote (46286)	6/4/1998 1:10:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Mark, I agree entirely with your points. Dell is clearly targeting the upper end of the PC market and making excellent progress in servers and laptops. That's why the ASPs didn't fall as rapidly as the industry average. If and when Compaq and IBM get their inventory problems squared away (and I'm not holding my breath on that) we should get a dramatic increase in profit margins because it looks as if component prices will continue to fall. I do believe that Dell management has been a bit disingenuous in explaining away falling prices as simply the result of falling component costs. The real reason, of course, is that they operate in a competitive environment and must price according to the market if they wish to remain competitive. TTFN, CTC

To: Mark Brown who wrote (46286)	6/4/1998 1:13:00 PM
From: Lee	Read Replies (1) \| Respond to of 176387

Hi Mark,..Re:<<To me, it looks like the revenue per unit is holding up WAY better than the industry as a whole. Can anybody share light on this? Why woud the stock get knocked for that? >> First, falling ASPs are apparently a hallmark of the PC, semiconductor, and other fast moving high tech industries. Yet, we are told by 'knowledgable' shorts that it is in reality a sign that the industry has turned and is facing a decrease in sales, profits, growth, etc. Secondly, we are also told by those in the 'know' that by missing a supposed whisper number by one penny that Dell is heading for obscurity. Lastly, while we always listen to those in the 'know', we never risk our money based on what they 'know' and share with us. Also, Dell isn't immune to the overall NAZ correction. Hope this helps,<ggg> Lee