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

To: cfimx who wrote (456)	10/19/1998 2:21:00 PM
From: Axel Gunderson	Respond to of 4691

would like to understand your view of their competitive position. My assesment factors in their global service and support capabilities, as well as technology. What, you don't think Hewlett-Packard is global? :-) There is no question that DNEX is #1, they've got 70% of the market. There is also no question that for their competitors it would probably not be worth the resources necessary to try to take over the lead. This is part of why I consider DNEX to have a safe business. I fully expect they will remain a free cash flow generating machine for years and that management will continue to conduct their affairs in a rational, ethical manner. But their equipment is not as far ahead of everybody else's as your first post suggested. Their current scientific computing stuff is very nice, their equipment is quality and the precision is great, but the differential I inferred you to be sugggesting simply isn't there. To explain this would take us well out of investing and well into precision instruments, and while I applaud anybody who wants to understand, the "return" on this won't help with the investing. Axel