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

To: jim kelley who wrote (48445)	6/21/1998 7:58:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Jim, I just got the latest MSDW report (May 29), and it makes the following excerpted points: 1. "Sale of Pentium II PCs continue to ramp up, yet sub$1,000 PC sales dominate the retail market, and we believe that these lower price points are beginning to attract a portion of the business market." 2."Once again, PC inventory levels are a concern, particularly among corporate resellers and distributors., since a few PC original equipment manufacturers (OEMs) stuffed the channel in late 1997 and early 1998. We believe that inventory levels are trending lower gradually. Our sources indicate that inventories in the distribution channels now range from from 3-8 weeks, with Compaq Computer ... toward the highend in the range of 7-9 weeks, International Business Machines ... in the middle with 6-8 weeks of inventory and Hewlett-Packard ... inventory in the 2-4 week range." 3. "Currently the 'sweet-spot' for corporate desktop ASPs remains between $1,700-1,800 compared to about $2,200-2,300 last year. ... Laptop ASPs have dipped modestly to just below $3,000, and server ASPs have also declined. Laptop ASP's may stabilize in 2Q98, due to release of PentiumII notebooks." 4. "Robust growth continues in the direct PC market. Dell (Outperform) remains the leader in the direct category, and management believes it is now the third largest PC manufacturer world-wide. 5. "We continue to believe that the rate of PC growth is slowing. Morgan Stanley Dean Witter continues to to forecast worldwide industry PC growth at 15-17% in 1998 vs. 18% growth in 1997." They conclude with their top picks in the industry with Dell rated an outperform. CPQ is not rated. IBM rated outperform as is HWP. But Dell is explicitly picked as the best of breed. TTFN, CTC