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

To: TwoToTango who wrote (69020)	10/3/1998 7:30:00 PM
From: Ken Beal	Read Replies (1) \| Respond to of 176387

Hi TTT, Re: What are your thoughts on the DRAM issue? Increasing DRAM prices would affect all computer manufacturers. So Dell's stock price should stay "in line" with them -- in other words, if Dell's going to tank because of this one component, then all the other boxmakers should tank too. In fact, thanks to Tom Meredith's financial acumen, Dell will probably be the least affected of the computer vendors. (Look at their performance in Asia while everyone else is being hurt bad.) Cheers, KenB

To: TwoToTango who wrote (69020)	10/3/1998 11:35:00 PM
From: TigerPaw	Read Replies (1) \| Respond to of 176387

His theory: Dell will be hit hard by rising DRAM prices. While it is true that Dell would be hit first by an increase in DRAM prices, after Apple was hit a few years ago with a warehouse full of DRAM, none of the major companies are keeping more than about a 30 day supply on hand. Any individual component would have a very short term impact, certainly not enough to cut 50% from the stock price. More like 1/8 and only for the month in question. TP

To: TwoToTango who wrote (69020)	10/4/1998 12:30:00 AM
From: Chas	Respond to of 176387

I say Dell will not be hit hard by DRAM pricing for the following reasons: -suppliers are raising prices very slowly at OEM accounts, like less than 4-5% per month. -Remember the memory content in a PC these days is percentage wise very small compared to the overall cost of the computer.my guess is 7% on a low end to 7.5% for mid range. So raising the memory price by only 4-5% when it only represents 7% of the total cost, is mice nuts. -Any price increase at Dell will also be seen at all PC manuf. most of the retail channel guys are not going to benefit because: -even though they may buy ahead, most of their supply comes from the third party module makers, and the slight tighteness going on with PC100 is not allowing any stock piling of product, some of the third party guys are having to pay higher prices when they have to go to they spot, but most will get the supplier contract price. So these channel guys really wont benefit from the memory price going up, as its hand to mouth to keep up with deliveries. Bottom line, Dell is not going to be hurt by DRAM pricing.

To: TwoToTango who wrote (69020)	10/4/1998 9:52:00 AM
From: Mohan Marette	Respond to of 176387

REF:DRAM price increase. Well,this question was put to Michael Dell by a reporter in a recent interview,I think it was Rene San Miguel of CNBC but not sure,anyway Dell responded by saying and I paraphrase:- In the event of a price increase the prices of PCs would increase but in DELL's case this would also give them an opportunity to increase the margin and since the event is not company specific it would not affect the overall demand for PCs and DELL did not see this as a major impediment for the growth of the company.