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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Margaret Mateer who wrote (10866)	6/27/1998 10:54:00 AM
From: David Weis	Read Replies (1) \| Respond to of 42787

Hi Peggy (or Margaret) --- thanks for the link (I've repeated some of the text and the link below) and I agree with you that IF Tom is correct, then it is a VERY scary post. I just hope that Tom Marsico took into consideration that components from Asia will cost less to DELL. So, if DELL can buy their raw materials cheaper, then can they sell their product cheaper and still have the same percentage Return? Granted, they DO have to sell MORE to have the same revenue. Is Tom implying that DELL will not sell as many units in Asia as they have in the past??? Exactly how much of DELL's market is in Asia??? I don't remember the exact figures, but something less than 5% seems to stick out in my mind. Of course, "I could be making a mistake," but $5 million/day in sales via the Internet does seem like a good start to me toward increasing revenues. "The average selling price for their computers was going down at a faster rate than the company has anticipated," he says. "The problems in Asia mean that gross profits are going to be less. The fundamentals have changed." Marsico sold his position reluctantly. "I could be making a mistake," he admits. "They are a fine company, very good people, great managers, but we just think that the environment we're entering creates problems for them and the industry." Entire text can be found at: Message 5034422