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

To: kemble s. matter who wrote (53676)	7/23/1998 8:22:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 176387

Quite infectious I must say. Hi Kemble: Your enthusiasm for and loyalty to Dell is quite infectious,if I were Michael Dell I would have paid you a royalty, Oooooops I think he has already done that forgot all about that and still continue to do so. What a guy!!!!<VBG>

To: kemble s. matter who wrote (53676)	7/23/1998 8:54:00 PM
From: JRI	Read Replies (3) \| Respond to of 176387

Hey Kemble: In three weeks, everyone will have forgotten about the turmoil of the last few days (and maybe tomorrow)... Just got back from my trip...A few thoughts... First of all, GTW's results should be clear evidence to all that Dell's success is not only due to J-I-T, B-T-O (as some would claim, copy it, and you've got it....). NO! NO! NO! It is also about (1) execution (which Gateway has demonstrated is not easy to do) and (2) which segments you choose to compete in....These are two very important points! Gateway is weak in the large corporate market.....this is bad for Gateway! The consumer market (low-end) was absolutely brutal in Q1 and Q2 with IBM and Compaq dumping old technology at fire sale price and HP (1st Q) going hard for share (and cleaning up inventory)....Having the greatest model in the world, but having strength only in consumer (and small business) obviously has not been a screaming success for GTW....They will come back, however, and be a strong player in consumer...Corporate, I doubt it. Second (and I don't know if this has been posted)...Let's remember that Dell is reporting months May, June, July....all others April, May, June! This is really significant....It appears from all indications that April was a horrid month for all, but April WAS ALREADY included in 1st Q Dell's results (and not the others)....Instead, Dell get the month of July (which all PC companies and antedotal (sp?) evidence have indicated was strong.....Also, since Dell's focus is not consumer, these "cycles" that others report are less important anyway.... I have a theory that the "horrible" April even caught Dell by surprise last quarter.....if you recall, expectations were for a blow-out...I have a feeling that Dell was monsterous in February, March, and that everyone suffered in April...hence the .44 (I have read somewhere before that April is traditionally the worse month for PC sales).. Also, the effects of the PR campaign, the CNN piece, Fortune, should be felt in Q2 (especially on the consumer side)...I expect to see great consumer sales for Dell, although administrative expenses may be higher (in some line-items) due to the ad campaign, and as Chuzz noted, all the construction going on...... Gateway did well in Asia, this should kill one bug-a-boo.... After reading, hearing, and seeing MD, MT, KR, and TM in recent days, it is clear that things are continuing to go well....Dell is so damn consistent....I am looking for at least .47 and maybe .48, and then we will hit the 2nd half cyclical upturn. Remember Meredith's words "2nd half in Europe will be VERY ROBUST! If Dell drops with any weight tomorrow, I might go margin....I am looking for a nice bounce (up to 125-130) until earnings.....may have to wait until next week though for it to start.......Although we all know splits shouldn't make stock go up, we are going to get one soon (earnings?), and the rumor will surface again, say hello to the MOMO's..Regardless of the action of the next few weeks, I am convinced that Dell is going to be a terrific investment over the next 2-3 years...I look forward to posting more complete arguments this weekend why I am more convinced then ever(once I unpack)....a short essay, if you will entitled "Why Dell"..... It was great meeting you Kemble....I already have next year in the day planner!