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Technology Stocks : DELL Bear Thread -- Ignore unavailable to you. Want to Upgrade?

To: rudedog who wrote (1040)	6/14/1998 1:19:00 AM
From: Bilow	Read Replies (1) \| Respond to of 2578

Hi rudedog; Yep, with the severe further decline in computer prices over the next few years, it will be quite tough to make a profit. My guess is Dell goes to single digits within two years, or, if they split again, to a nonmarginable (i.e. penny) stock. To find possible survivors in the box business, look for a company that: (1) Is embracing the sub $1000 market as much as possible, rather than attempting to escape the carnage by ignoring it. (2) Already is in the business of selling huge volume very low margin, electronic equipment, and has a business plan tuned to squeeze tiny profits from very high volume production of aging technology. (3) Is able to produce the entire product in house, thus avoiding the inevitable costs (i.e. shipping, taxes, negotiating, allocation, etc.) of buying parts from outsiders. (4) Has the ability to sell computers to places that sell other home appliances, like stereos, dish washers, vacuum cleaners, etc. -- Carl