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

To: jim kelley who wrote (57359)	8/10/1998 3:55:00 PM
From: SecularBull	Read Replies (1) \| Respond to of 176387

Jim K., I find this little DELL Bear to DELL Bear conversation going on to be amusing. The usual suspects are throwing slow-balls in an attempt to lure the less informed in to believing that DELL is threatened by Compaq. The only company that is threatened is Compaq. Aside from pointing out the obvious (to keep the less informed from being lulled-in), it is perhaps better just to not reply to their little posts. BTW, I enjoy reading your replies to these bears, as is the case for most of your posts. Regards, LoD

To: jim kelley who wrote (57359)	8/10/1998 3:56:00 PM
From: Jim Patterson	Read Replies (3) \| Respond to of 176387

RE: If you can not do the math yourself, why don't get someone to do it for you. Pretty disgusting...... The report came from: Give me a minute here..... ..... ..... I can't find it, It was in a first call note, One of those summaries of what happened last week with pricing ect. It said that CPQ was beating DELL on configuration. I read it. It you don't want to believe me, don't. Jim

To: jim kelley who wrote (57359)	8/10/1998 5:58:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Jim, not to put too fine a point on it, but if Compaq cut their prices by 10%, then the reduction to profit would be 2.7MM * $1926*.1 or $520MM per quarter, all other things being equal. But your point is well taken in any event. It makes no sense for Compaq to engage in that kind of self immolation. Rudedog made a comment in an earlier post that needs correcting. He said that Compaq could manufacture computers -- particularly servers -- at a lower cost than Dell. I'm sorry, but there is no data to substantiate that claim. Compaq can undoubted purchase parts and components at lower cost, but Compaq's higher inventory carrying costs more than make up for this. On a percentage basis it seems to me that Dell's COGS is lower than Compaq's. Considering the fact that Compaq has relatively high margined server offerings seems to me to be a juicy target for Dell, given their obvious cost advantages. TTFN, CTC