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

To: Jim Patterson who wrote (52864)	7/21/1998 4:58:00 PM
From: Tweaker	Respond to of 176387

Hammer, hammer, hammer. Profit= X. Average selling price goes down. Price of parts goes down. Profit still = X. Not only that, but more people can afford to buy a machine. More times X = more profit. More profit is GOOD!! Phil

To: Jim Patterson who wrote (52864)	7/21/1998 5:06:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Gadzooks Jim you look like a nail to me. I consider you hammered. TTFN, CTC

To: Jim Patterson who wrote (52864)	7/21/1998 5:12:00 PM
From: Venkie	Read Replies (3) \| Respond to of 176387

Asp...It was just a couple of days ago when Mikey was very positive.. The market over reacted and i will profit and you 328jdghdndkv

To: Jim Patterson who wrote (52864)	7/21/1998 5:15:00 PM
From: Fangorn	Read Replies (1) \| Respond to of 176387

Jim, re> Lower ASP's...mean a lower $$ profit per machine.< This is totally unsupported by anything reported anywhere. Also you claimed earlier that The Great Depression was national, if it happened today it would be global. From this statement I can only assume your grasp of history is abyssmal, I guess Hitler got his start in a mere recession in Germany, Mussolini because the trains were slow.

To: Jim Patterson who wrote (52864)	7/21/1998 8:02:00 PM
From: stock bull	Read Replies (3) \| Respond to of 176387

Jim, the drop in ASP's can be offset by a reduction in the product's MLB (Material, Labor and Burden). If the dropping ASP is offset by the MLB on a 1:1 basis, then the gross margins remain the same. The question that should be answered is: Who is driving the reductions in the ASP? Is it the market place, or is it Dell themselves? If it is the market place, and Dell can't keep driving the MLB down as needed to offset the falling ASP's than there is trouble ahead. If Dell has control over the ASP's and the MLB, then things will be ok. However, I seriously doubt that Dell is driving the reductions of the ASP's. If they did, they would be leaving money on the table. I don't believe Dell would do this. So, I must believe its the market place that's driving the ASP's down. When the industries component inventory surplus is reduced, the prices will stop falling, in fact they may rise. This could spell trouble for Dell. The Wall Street Analyst's are closely following the ASP's and their affect on Dell. When Meredith announced today at the Paine Webber conference that ASP's were dropping from the levels in the last quarter, the sell orders were triggered. The fact that Meredith stated that margins were ok, and there were no problems within the company were not much comfort to the Analysts. Keep in mind, Dell's current stock price is based on "perfection". Falling ASP's are not in the universe of perfection...at least not with Wall Street. Stock Bull