Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Buffettology -- Ignore unavailable to you. Want to Upgrade?

To: jhg_in_kc who wrote (369)	9/25/1998 5:45:00 PM
From: jhg_in_kc	Respond to of 4691

FYI Dell Computer Corp. shares rose as much as 4.6 percent to a record after executives at the biggest direct-seller of personal computers said the economic crisis in Asia won't impede sales growth. Dell rose 2 5/16 to 65 5/8 in midafternoon trading of 26.7 million shares, making it the most active U.S. stock. Earlier, the shares touched a record 66 1/4. Chairman Michael Dell said he's confident the company can continue to increase growth, even in regions such as Asia and Latin America, where rivals have seen declines. Dell made the comments to about 150 analysts at the company's semiannual analysts meeting in Austin, Texas, near Dell's headquarters. ''These are markets that are under intense economic turmoil, but our markets continue to be pretty good there,'' he said. Dell's Asian sales grew 35 percent in the first half of the year, even though the overall PC market in Asia declined 9 percent, he said. ''They are still seeing strong growth,'' said analyst Dan Niles of BancBoston Robertson Stephens, who rates Dell ''market perform.'' Shielded Possible currency devaluation in parts of Asia and Latin America doesn't pose a significant threat to Dell's profitability, Vice Chairman Mort Topfer said. ''We have not changed our direction, our strategies,'' he said. ''We have continued to remain profitable.'' The company is shielded from the economic turmoil because it has a small piece of the market, only about 3 percent of the Asia/Pacific region, Topfer said. In addition, the company's model of selling computers directly to customers keeps its costs lower than its competitors and makes it less vulnerable to currency fluctuations. ''It's clearly hurting a lot of other companies, but we're not affected,'' he said in an interview. Michael Dell predicted that worldwide demand for personal computers will increase 17 percent a year for the next three years, and forecast that his company will continue to exceed that growth. From 1995 to 1997, the number of computers Dell sold rose by 54 percent, compared with 19 percent growth for the market overall. Dell probably will outpace the industry by a 2-to-1 margin until 2000, said Amir Ahari, an analyst with market researcher International Data Corp. Still, he called Dell's forecast of 17 percent industry growth ''a bit aggressive.'' Michael Kwatinetz, an analyst with Credit Suisse First Boston, forecast industry growth of 14.5 percent this year and 15 percent next year.