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Technology Stocks : DELL Bear Thread -- Ignore unavailable to you. Want to Upgrade?

To: Billy who wrote (1255)	7/21/1998 11:31:00 PM
From: Lucretius	Read Replies (2) \| Respond to of 2578

DELL is finished whether the decline continues from here or it moves a little higher. Either way.... it is OVER. DELL w/ it!!!!!!!!!! From my post on another thread: The CC was less positive than usual first of all. DELL's CFO sounded concerned about business (that's the best way I know how to describe it). Because DELL's business is based on build to order w/ no channel to retailers, a slow down will hit them SUDDENLY and VIOLENTLY. Additionally, their ASP has dropped.... AGAIN! The writing is on the wall w/ this POS. Start buying puts now. W/ a current mkt cap of 80 billion (total world-wide PC sales are only 130 billion) My favorite maker of plastic boxes w/ chips is headed for the high-flyer graveyard. -Lucretius

To: Billy who wrote (1255)	7/21/1998 11:42:00 PM
From: Samnsm	Read Replies (1) \| Respond to of 2578

DELL dropped on comments by DELL's Chief Financial Officer Tom Meredith on a broker conference call. The comments were misinterpreted and DELL immediately restated them on CNBC to correct any misunderstanding. During the conference call the CFO, Meredith, said that the ASP (average sales price) was declining. What the brokers did not hear or relate to was the comment that component prices were also declining. It costs DELL less so they sell them for less. CFO Meredith, and the later DELL press release, confirmed this had no negative affect on margins or earnings. By constantly decreasing prices DELL stays more competitive and stay ahead of the slower to react CPQ, IBM and HWP. GTW announces on Thursday and then the shift to DELL for the earnings play will begin. A split by GTW will only intensify the run. 2:1 split or better with DELL earnings is almost a 100% certainty. DELL dropped on comments by DELL's Chief Financial Officer Tom Meredith on a broker conference call. The comments were misinterpreted and DELL immediately restated them on CNBC to correct any misunderstanding. During the conference call the CFO, Meredith, said that the ASP (average sales price) was declining. What the brokers did not hear or relate to was the comment that component prices were also declining. It costs DELL less so they sell them for less. CFO Meredith, and the later DELL press release, confirmed this had no negative affect on margins or earnings. By constantly decreasing prices DELL stays more competitive and stay ahead of the slower to react CPQ, IBM and HWP. GTW announces on Thursday and then the shift to DELL for the earnings play will begin. A split by GTW will only intensify the run. 2:1 split or better with DELL earnings is almost a 100% certainty.