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

To: The Phoenix who wrote (64697)	9/10/1998 12:56:00 PM
From: stockman_scott	Read Replies (1) \| Respond to of 176387

Gary: Don't underestimate DELL's unique position in the marketplace. Here are a few quotes from a recent SG Cowen Securities report written in the last week: "We look for the gap between DELL and the competition to widen, dramatically." "Indirect vendors, recovering from from short term channel overstock issues, fundamentally will continue to have a difficult time finding an optimal business model given current constraints." "Internet-based models are most easily deployable on top of direct, rather than indirect models." "DELL continues to see component price erosion at somewhat greater than a normal rate." "Our F01 / C00 estimate assumes that DELL expands its unit market share from approximately 5.8% globally in calander 1997 to just over 12%." "We maintain our 1/ Strong Buy rating with a $135-140 price target, 47-48* C99 EPS , 36-37* C00 EPS." ---------------------------------------------------------- The above comments are from Richard Chu -- a very bright analyst from SG Cowen Securities. His report was posted on First Call and dated September 2nd, 1998. --------------------------------------------------------------- DELL is miles ahead of its competition for good reasons. Many are listed above. They also have created a culture that is very difficult to duplicate. DELL's ability to attract, motivate, and retain the TOP TALENT is legendary. Buy and Hold DELL and you will always come out ahead. -Scott

To: The Phoenix who wrote (64697)	9/10/1998 2:33:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Gary, The point remains that this distribution flow/model is the only "barrier" DELL currently holds ... I see you've come a long way in your thinking since you now acknowledge that a barrier indeed exists. The next step in your evolution will be to appreciate just how difficult it is to breach that barrier. There is an interesting parallel in chemical thermodynamics. A reaction which involves a move from a high energy state to a low energy state may not occur because of an intervening energy barrier. The higher the barrier the more difficult it is for the reaction to occur. In order to get the reaction you require large amounts of externally supplied energy. Dell's business model is the end result of the rection, but jettisoning distribution channels and establishing a new demand based infrastructure is the barrier. What company would be willing to rebuild its sales effort from scratch by pulling product from retailers shelves and distributor's warehouses? How long would it take them to rebuild their sales? How long would it take them to put into place an efficient ERP system? Which comes first, the infrastructure (JIT logistics management), or the jettisoning of the channels? Finally, how deep must the company's pockets be to make this transition? TTFN, CTC