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

To: The Phoenix who wrote (1812)	9/3/1998 2:49:00 AM
From: Stewart Walton	Read Replies (1) \| Respond to of 2578

Gary, I think we substantially agree on all points! See if you agree that we agree: I don't know how fast DELL will grow either, but I think it will be faster than the market, and faster than any of their competition. On expanding markets, I don't believe that there is a single market unless it's defined very broadly to include all computer products and services. I don't think this is the way the market valuations are typically done, because they'd be less than useful. You want to know how you're doing in the markets you compete in, and you want to know total shipments for bragging rights. CPQ expanded its market by acquiring Tandem and DEC, entering markets in which it had no previous presence. When Dell enters a new market it is expanding its own market, single-handedly, I guess. Am I misunderstanding this? Dell has been pretty successful in the markets they address. I don't think the competition has to copy DELL's model, but I haven't seen anything better or even nearly as good. JIT will always, always be an advantage for a technology company. Direct and BTO are just natural for a quick-moving computer company. As for how many ways DELL or anyone else can screw up a good plan, well, you never know what's gonna get you till it's too late. DELL's track record has been good in this regard, however, and I'll take that as a promise to do as well in the future. I will bet that Michael Dell and Intel's Andy Grove have a lot in common when it comes to worrying about the competition. But your basic question was "Isn't Dell just a distribution company?" My answer, and that of the bull thread in general, is "No, it's a lot more. Specifically it's a fantastic cash-flow generator, and the envy of the competition." Great exchange, BTW. Regards, Stewart