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To: L. Adam Latham who wrote (59245)	7/2/1998 1:34:00 PM
From: Paul Engel	Read Replies (1) \| Respond to of 186894

Adam & Intel Investors - Potential Good News - Bullish Forecast from Dell Dell sees a strong second half in Europe - so let's hope that spills over to Intel. Paul {=========================} Dell CFO Sees Stronger Europe Sales by Gabrielle Jonas, TechInvestor July 01, 1998 (05:21 P.M.) techweb.com Dell Computer expects strong growth in European sales in the second half of this year, the company's CFO said Wednesday. Brushing aside concerns about flagging PC demand in Asia, Thomas Meredith said the company is comfortable with second quarter earnings estimates -- pegged at 46 cents per share by First Call -- and painted a picture of long-term growth and stability, rather than any profit bursts in the short term. "The Asian flu clearly has countervailing implications," Meredith said, but "we still feel good about the value proposition in Asia. We are really well-positioned, regardless of what's happening with [the delay of] Merced and Y2K." Europe in the second half of this year will be "very robust," Meredith said, in part because of improvements in the macroeconomic environment. The company is trailing Compaq [CPQ] and IBM [IBM] in Europe, however, according to Ashok Kumar, who follows Dell (company profile) for Piper Jaffray. "Some of the non-top-tier players' problems are allowing some of the bigger players to consolidate the market more rapidly," in Europe, Meredith added. "We already saw that in the fourth and first uarters." Dell posts stronger sales in Europe every quarter, not just every year, he said. When asked whether the PC industry will become more dependent on the enterprise-servers business as consumer PC prices fall, Meredith said declining prices are not eating into Dell's bottom line. And with notebook growth of 80 percent a year, the company can well afford to drop notebook prices by several hundred dollars. "We did that because we could," he said. But Dell does have big plans to ramp up its enterprise business. "We expect the enterprise business for Dell -- which currently contributes 11 percent of overall revenue -- the target should be closer to 30 percent over time," Meredith said. On Wednesday, shares of Dell [DELL] closed up 1 1/8 to 93 15/16.

To: L. Adam Latham who wrote (59245)	7/2/1998 3:21:00 PM
From: gnuman	Respond to of 186894

L. Adam Latham, re: CompUSA Funny, sounded like you were describing the Computer City store near me. Guess it has a lot to do with the store manager. CompUSA had about the same revenues as Tandy, (Radio Shack and Computer City), last year. A little over $5 billion. And as you probably know, CompUSA is buying Computer City. So you may have fewer choices soon. I think CompUSA's problems are more a matter of lower PC sales in general than losing customers, but could be some of both. I also think Win98 will be the whipping boy for a lot of 2Q bad news. And speaking of Win98, I heard a Microsoft commercial today. Paraphrasing, Dad to son, "Why should we upgrade to Windows 98, son?" "Because it's a lot more reliable than Windows 95 dad!" Hell of an admission that Win95 isn't reliable! ;-)

To: L. Adam Latham who wrote (59245)	7/3/1998 2:51:00 AM
From: Gerald Walls	Respond to of 186894

I'm wondering if CompUSA's bad quarter may in part be due to loss of customers to competitors. Computer City and Best Buy are better in this area, and the two Gateway Country stores are getting a lot of traffic (don't know how much people are actually buying, though). Here in Phoenix I mainly shop Best Buy and Fry's Electronics. I'd probably shop Fry's exclusively if it wasn't a 60+ mile round trip across town. I usually only go to CompUSA for the free-after-rebate junk although I did buy my 19-inch Hitachi monitor there. I find their radio ads somewhat insulting.