Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Chuzzlewit who wrote (52662)	7/20/1998 6:17:00 PM
From: rudedog	Read Replies (1) \| Respond to of 176387

Chuz - What kind of flexibility does a superbly managed assembly distribution company have? Something I have been saying about Dell for a while. CPQ has so much infrastructure in the computer business that they have huge cost (and risk) in stepping out of that frame. They have no real choice but to develop and foster growth in their segment. Dell on the other hand could get into anything where excellent management of assets, innovative thinking about supply chain economics, and great market analysis pay off. They could go completely outside of the computer business - or even completely outside of technology products - and still make that work. They have a much larger menu of opportunity to select from than their competition.

To: Chuzzlewit who wrote (52662)	7/21/1998 2:10:00 AM
From: Stewart Walton	Respond to of 176387

I agree with your contention that Dell is not exactly a technology company. If you think of the training that must be going on inside this company, the implications are immense. Here in San Diego, there were about 15 companies that traced their lineage to Linkabit, the first company started by the founders of local powerhouse Qualcomm. Think of the fire that Dell is going to provide the marketplace in the form of second-generation entrepreneurs hitting the streets with the experience they have gained at a top flight manufacturing company.

To: Chuzzlewit who wrote (52662)	7/21/1998 9:32:00 AM
From: Jim Patterson	Read Replies (4) \| Respond to of 176387

Chuzz, Man did you step into it with this one. >>>>Dell is unique in many ways. Probably the single biggest item that sets it apart is that it isn't a tech company at all! It is an assembly company. It relies for the most part on technology developed by others. This is not to say that it doesn't have significant R&D programs. Just that the bulk of the technology is developed by others. A second item that you have neglected is that Dell is a distribution company.<<<< You just said that DELL is a part assembler. That means that DELL is a commodity maker. Yes they are good at it, and have developed a unique way of distributing those commodities that they assemble. The big But is, Part assemblers should not trade at 75 times earnings no mater how incredible their growth is. Could you imagine the CEM companies like SCI trading at 75 times eps ? Thank you for so eloquently restating one of my main points. Jim