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

To: JRI who wrote (73221)	10/20/1998 7:58:00 PM
From: stockman_scott	Read Replies (2) \| Respond to of 176387

DELL SEEMS VERY HEALTHY to me. I just had a chance to check my First Call database. There are no new official postings on DELL (by Wall Street firms) that are negative. In fact, Piper Jaffrey has not made any new comments on DELL since the analyst meeting in Texas. The last posting on DELL was made about 24 hours ago and it was quite positive. Here are the highlights: Morgan Stanley PC Hardware/Peripherals - Mid Reporting Season Update 10/19/98 -"PC demand is healthy and we are seeing a typical seasonal uptick, though we continue to believe that the rate of year-to-year growth in PCs is slowing. European (26% of worldwide units) demand is much better than expected and Asia continues to be a sore spot (24% of worldwide units)." -"Channel inventory in the PC market is about 4-5 weeks. This is making the environment much healthier from a profitability perspective." -"New portable designs are gaining ground across the market, and the high-end PC server market is experiencing robust growth." -"We are watching how the relationships between the big indirect players and the channel play out. This will be and important story to monitor as there could be some channel backlash from efforts by big players to take a more direct approach to customers." -"In PC Hardware, we are encouraged about demand trends. We believe that there can be upside to revenue trends in late C1998, and we also see strong demand (with the exception of Asia) entering into C1999." -"In our view, the cleanest way to play healthy PC demand is DELL which we rate OUTPERFORM. We look for CQ3:98 EPS of $0.27 (up 56% Y/Y), on $4.76B in revenue (up 49% Y/Y, up 10% Q/Q), a gross margin of 22.5% (down slightly from 22.7% in CQ2), an operating profit margin of 10.9% (down from 11.2% in CQ2:98). The first call mean estimate for DELL's EPS in Q3 is $0.27." -"DELL's direct model continues to work very well and we believe that demand is strong across all products and geographies. Moreover, the company continues to build its internet business....In a more uncertain market environment, we continue to believe that it is crucial to focus on the companies that can prove their execution abilities. And, in the PC space we think DELL is the execution leader." --------------------------------------------------------------- Sleep Well...Long Term Investments In DELL Will Richly Reward Investors. -Scott