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


To: stock bull who wrote (52921)7/21/1998 8:26:00 PM
From: Diamond Jim  Read Replies (2) | Respond to of 176387
 
Go ask Intel about falling ASP's.

jim



To: stock bull who wrote (52921)7/21/1998 9:30:00 PM
From: AmericanVoter  Read Replies (2) | Respond to of 176387
 

I am not as sophisticated an investor as many on the thread, but I like to ask questions about what I don't know. What is ASP ? Also, I am somewhat baffled, if everyone is expecting DELL to announce a split with earnings which will make the share price go higher, why the worry about todays drop which is basically profit taking...?

Thanks



To: stock bull who wrote (52921)7/22/1998 12:56:00 AM
From: Chuzzlewit  Read Replies (1) | Respond to of 176387
 
Stock Bull, I don't know how many times you guys need to be hit over the head before you get it. ASPs and profit margins are meaningless by themselves! Didn't Michael Dell point out that the gross profit margin in mouse pads is higher than computers?

Gross Profit = Units Sold * Gross Margin * ASP

The only thing that counts in this calculus is gross profit. ECON 101 ---> Maximize Profits!

It does not say Maximize ASP, or maximize Gross margin or maximize units sold.

If you want profit margin look to another segment. You want high ASP buy BA. You want growth? Forget GMs and ASPs and invest in Dell.

TTFN,
CTC