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

To: WBC who wrote (73391)	10/21/1998 7:55:00 AM
From: Dorine Essey	Respond to of 176387

I found this on the CPQ thread. Thought you all might be interested. I also heard Greenbers remarks this am on MSNBC. Dorine Greenberg, fresh from using Kumar to raise generalised, unverifiable doubts aboout Compaq is doing it again, even though this time Kumar's subject-matter is Dell. _____________ This is a paraphrase: According to Greenberg "of all PC makers, Dell (DELL:Nasdaq) so far has escaped getting lumped in as headed for trouble by the prophets of doom." But he thinks this may eb changing because Piper Jaffray's Ashok Kumar, "fresh from his not-so-glowing comments about Compaq (CPQ:NYSE), told his firm's sales force that he's getting indications that there has been a pause in information technology spending by corporations." When Greenberg spoke to him eysterday "the tone of his comments was ominous." Kumar claimed that he was hearing that the sentiment from large and medium-sized businesses, regarding their commitments, is getting negative. He said that "Most companies used to go to the tail end of the quarter and say, 'We'll give you a discount, just take the units.' MIS managers were obliged to do it. Now that's not happening, and this is the first quarter that has happened in a long time." Kumar woudl not comment on the rumour that he had heard that Dell salesmen aren't making their quotas so far this quarter. No comment, too, from Salomon Smith Barney analyst Rich Gardner, who is reported to have told his customers that he had picked up a change in tone by Dell's investor relations department. According to Greenmberg, Kumar made it a point to say that he's not expecting any change in Dell's current quarter, nor has he downgraded the stock, something that was widely rumored; rather he thinks this could be an issue for all PC companies going forward. Greenberg says that Compaq's sales have already started to miss Wall Street estimates and that all eyes will be on Gateway's (GTW:NYSE) sales (not earnings) Thursday, followed by Dell's earnings Nov. 12. Greenberg claims that a Dell spokesman sticks by the company's longstanding policy of not forecasting future results. He reiterated the company's prior comments that it expects to grow at a multiple of the industry and that the Year 2000 debacle may actually help its sales _________________ Nods, winks, unverified observations, soundings - all hard to refute. Ultimately, I would prefer increased earnings to increased sales.