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

To: Mohan Marette who wrote (63646)	9/4/1998 8:54:00 AM
From: JPR	Read Replies (1) \| Respond to of 176387

Mohan: Jim Collins on DELL The INVESTools Advisory, August 31 - September 4, 1998 1. Dell: A Tremendous Buying Opportunity (DELL) Friday, September 4, 1998 Wall Street analysts predicted that the Asian economic problems would pulverise the demand for PCs there and send the soaring stocks of leading computer makers spiraling downward. They were right, as shipments fell by nine percent and computer stocks took their share of the recent market hits. But though stock in Dell Computer (DELL) has dropped with the rest, the number one PC firm actually saw its Asian revenues increase 34 percent to $280 million for the latest quarter. Reasons to like Dell abound, according to growth stock guru Jim Collins. For instance, he cites that stock in Dell more than doubled this year despite the decline. The firm recently stole the number one spot among computer makers from Compaq, one of many testaments to the strength of the firm's direct-purchase business model. The Board of Directors recently approved a 2-for-1 stock split after trouncing analyst estimates for the quarter by increasing earnings more than 70%. All geographic and product areas saw strong sales growth, and gross margin improvement on both a sequential and year-on-year basis tell Collins that Dell is "managing well in an extremely competitive environment." The future for Dell looks even brighter to Collins. He predicts much of the firm's growth will come from two of its smallest but most promising segments, namely the booming server business and direct sales over the Internet. "We would view the recent weakness as a tremendous buying opportunity," says Collins. For more on Jim Collins' recommendation see "Analyst's Review," September 1998, OTC Insight. Jim Collins focuses on the inefficiently priced OTC market using analytical techniques to select stocks and create portfolios. JPR