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

To: jim kelley who wrote (48877)	6/24/1998 7:35:00 AM
From: Sig	Read Replies (2) \| Respond to of 176387

Hi Jim Its too early in the morning for this stuff but will toss it your way anyhow(gggg) cbs.marketwatch.com What is going on here(in the market)? This is the way I look at the tech equities field. There are major and fast changes in the way American consumers and business make their purchases- impatience, security and cost being the clues . Web sales are the wave of the future and its going to be immeasurably large, as it will involve items from the smallest ,CD's for example, to major company purchases of quantity items ala Dell computers. Books, games,flowers, gift items, drugs ( the legal kind) The mom and pop stores are mostly gone now, as is the small farmer and many local banks.Consolidation is the name of the game. Security considerations( giving credit card or personal/financial info to a Web sight ) have been or are being addressed . There are and always will be con men operating, but the enforcement of laws may be easier now since transactions and records of both buyer and seller are somewhere in storage. Java , audio, and video will permit one to see and hear the actual product in operation, with an instant connection to an 800 number for purchase using the same single phone line for simultaneous two-way video and audio, The computer price wars (if one cares to call it that) is nothing new. Watch the phone and cable companies (now cutting thier rates) rush to update their equipment, adding fiber lines and bandwidth to stave off the coming satellite communications companies (and Bill Gates) Price wars and fire sales are an American tradition, watch Home Depot fight it out Lowes next door. Would you short Home Depot because of that???? Furniture stores in Seattle once ran up to eight fire sales in year, it got so bad they passed a law permitting no more than three(I believe it was) fire sales a year per store. Summary: 1. Do not worry about market cap of web related/web sales companies, their market is huge growing and immeasurable. After 101 years, Ford market cap is only $62 bil and although shareholders have felt amply rewarded with dividends the money wasted? in that huge company has been enormous with executive salaries, golden parachutes, banking agreements, designs (Edsel) gone wrong. 2. The winning Web companies will be those that deliver quality items the fastest ( if something takes more than 4 days to deliver I may buy it at a local store). Next day air or an equivalent is going to become common.- perhaps one should buy Fed Ex or UPS stock?(gggg) 3. I have left out communications, the most important and fun thing about the Web. We are coming up on 5 mil SI messages from all over the world. For example I can say here: Hi Paul Van Wijk, am sincerely hoping you make it to Austin , that "picnic" its only weeks away now.( Paul is just a short hop away, over in Holland) 4. Of the few things about which I am certain, its that participation in the tech equities that we talk about here is where its at( the money) today and for several years, regardless of what happens to the Dow..Go Dell, go LU,go MSFT, go INTC, go NT, go YHOO, go csco (add your favorite) Sig

To: jim kelley who wrote (48877)	6/24/1998 11:41:00 AM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Jim, I agree, and as you know, have always agreed with your argument on this point. I do take exception with one statement you made: IMO, it was a battle for perceived market share not long term sustainable profits. I believe that the only reason a company engages in a market share battle is to establish long-term sustainable profits at the cost of near term profits. Otherwise, what is the point? Companies generally hope to make their brand names synonymous with the product, like Kleenex or Scotch Tape. Intel tried that with "Intel Inside". Grabbing a huge chunk of market share is a necessary first step in that direction. Ultimately, the strategy involves substituting the brand name for the product in the eyes of the consumer, followed by increasing the price (thereby establishing ensuring profitability) once the company feels that the brand has a perceived value in the eyes of the consumer. Look at the marketing wars in toothpaste, pantyhose and other consumer commodities as examples of how the strategy plays out. TTFN, CTC

To: jim kelley who wrote (48877)	6/24/1998 6:28:00 PM
From: rudedog	Respond to of 176387

Jim - re: Dog seems to be able to take both sides of an argument. Market share is important but its not that important. CPQ does not swap obsolete inventory but it does. Price protection is being reduced and returns are being eliminated but they are not. Each in context. Market share is important to building long term brand awareness and equity. But when your house is burning, you don't worry so much about getting mud on the carpet. In general, market share is less important than profitability. Very few examples of successful market share grabs based on selling at a loss exist. You got me on the obsolete inventory, but that was a genuine religious conversion, 'I used to be a sinner but now I am saved.' And I am now convinced that CPQ did take back old stock. There was no time when I was saying both things. Finally, price protection is being reduced, that seems pretty well supported. My suspicion is that whatever return policy existed will exist in reduced form under the new guidelines since it is hard to get field folks to change their habits unless you have a 2X4 and a cattle prod. So I guess I am mixed on that one. Field people, channel managers and sales people will always have latitude to keep their customers happy, and over time they will find a way to abuse that lattitude if their metrics are not right. You may get a sense of why I would never want to work in or with the sales portion of any business. I agree that smoke on the battlefield seems to be the current CPQ tactic. Dell is one of the rare companies where the perception of the senior executives and the probable reality are close. I know many of the senior people at MSFT and Intel and if you think CPQ obfuscates you ought to play a few hands with those boys. But that in itself does not affect the investment potential, or the need for good information.