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

To: Tweaker who wrote (64421)	9/9/1998 2:53:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176388

Tweaker, thanks for a very interesting article. It raises a few major points of interest to Dell investors. First, there is a tendency for JIT manufacturers to try to push inventory onto the distributors. Second, there is a push from retailers to not only decrease retail inventories, but to have distribution points in close proximity to the retail outlets. As the article points out, someone has to pay for this. My conclusion is that intermediate channel costs will rise, and that this will necessitate either increasing costs to the consumer, or decreasing profits to the manufacturer and/ or distributor. Since the market is competitive, I expect the latter scenario. But the important point is that companies like Dell are immunized from these realignments because they do not use intermediate channels -- they sell direct. TTFN, CTC