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

To: BUYandHOLD who wrote (67784)	9/27/1998 11:00:00 AM
From: J. P.	Read Replies (2) \| Respond to of 176387

From Fleckenstein: (Sorry if this has already been posted...) stocksite.com <As I see it Today was the Dell analyst love-in down in Texas. Michael Dell said all the predictable, wonderful things. Naturally its stock caught fire, leading the charge as the market screamed higher. Let's put some numbers in perspective. Dell's market cap is $80 billion, yet we sell only $150 billion worth of PCs in the world annually. If you assumed that Dell achieved 100 percent of the worldwide market for PCs at $2,000 per box, and a 5 percent net margin, Dell would net $9 billion a year. With 1.3 billion shares outstanding, this would translate into $7 in EPS. At today's prices you would be paying nine times earnings for a company that has 100 percent market penetration, assuming no pressure on ASPs or anything like that. To look at this differently, people are assuming Dell's growth rate won't slow. In which case, it would have 100 percent of the PCs in the world in about five years.> Thoughts?

To: BUYandHOLD who wrote (67784)	9/27/1998 11:05:00 AM
From: Mike Allen	Read Replies (2) \| Respond to of 176387

Computer components for Dell and others. I don't think competitors have an edge on any hardware, as they all can get the same parts. If Compaq puts in a new technology first, before it gets through the channel, Dell will be putting it in also and selling more computers with it. Remember the head start they all had when Dell hadn't even built his first PC. 110+ by March, 2 for 1. Y2K ahead making Dell go.

To: BUYandHOLD who wrote (67784)	9/27/1998 12:51:00 PM
From: Boplicity	Read Replies (1) \| Respond to of 176387

Can you spell TRUST BUSTERS. PCI-X will become public domain. <ggg> Greg

To: BUYandHOLD who wrote (67784)	9/27/1998 2:11:00 PM
From: rudedog	Read Replies (1) \| Respond to of 176387

B&H - Although it would be possible for HP, IBM and CPQ to maintain a proprietary edge with PCI-X, their decision to take the standard to the PCI Special Interest Group (SIG) and to Intel says that they do not plan to do that. The standards will be public and Intel will make sure that the chips are available to everyone eventually. Obviously these three companies will have some initial time to market advantage, since all three are capable of producing their own silicon. This may give them 6 to 9 months in the market ahead of Dell. This would be the expected way that companies with big engineering and R&D would leverage that capability competitively. I would expect all three of these companies to use their R&D and engineering capabilities as often as they can to build a competitive edge. Look at HP and its joint development on Merced, CPQ and its joint development of high availability NT with Microsoft, and the many IBM ventures such as PowerPC. Dell's strength is to make maximum use of that technology once it is generally available, and maintain a lean and mean model. CPQ spent $2B in R&D last year, Dell less than 1/10 of that. You be the judge of which was the smarter investment strategy.