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

To: Dalin who wrote (79367)	11/12/1998 7:28:00 PM
From: Dell-icious	Read Replies (1) \| Respond to of 176387

The WSJ take on earnings: seems bullish. Dell Computer's Earnings Rise As Sales Through Web Site Surge An INTERACTIVE JOURNAL News Roundup Dell Computer Corp. reported a nearly 55% rise in net income for its latest period Thursday as revenue grew 51%. For the third quarter ended Nov. 1, the Round Rock, Texas, personal-computer maker reported net income of $384 million, or 28 cents a diluted share, compared with net income of $248 million, or 17 cents a share, in the year-ago quarter. The results beat analysts' estimates by a penny a share, but the so-called whisper number on Dell -- the unofficial estimate that circulates in advance of a company's report -- was 30 cents a share, and some traders and analysts reported hearing numbers slightly above that. Revenue, meanwhile, surged 51% to $4.82 billion from $3.19 billion a year earlier. Dell said online sales tripled compared with a year ago; for the first time, such sales topped $10 million a day, helped by a strong surge in corporate accounts. Dell began selling on the Web in July 1996, and by early 1997, the company was recording $1 million a day in sales. Dell has said it hopes to generate half of its overall sales over the Web by the end of the decade. Dell Chairman and Chief Executive Michael Dell issued a bullish outlook for both his company and the PC industry as a whole, saying Dell is targeting annual growth of 50%. With a 9% share of the market, company has plenty of room to grow and plans to take advantage of that, he said. Mr. Dell said the PC market will continue to grow by an average of 17% annually over the next three years as high-speed cable Internet access becomes a reality for more home computer users. Some industry watchers think this will drive computer prices down, since the Internet -- not the PC itself -- is what consumers would actually want. But Dell counters that users will want more robust machines to serve as their on-ramps to the Web. And even if the PC market were to slow down, his company and its top three competitors would still see strong growth as users continue to migrate to a few well-known brands, he said. Dell, whose direct-sales method requires little inventory, has capitalized on the falling prices of PC components such as chips and disk drives, turning in stellar results even as its competitors have struggled. The company has attributed the decline in average selling prices for PCs to lower prices for those parts. Most PC makers have had to sell many more computers to make up for sharply lower average prices.

To: Dalin who wrote (79367)	11/13/1998 12:59:00 AM
From: Timothy Liu	Read Replies (1) \| Respond to of 176387

> I would think that the price went down because everyone was selling. Collecting cash. Can the price drop like that without selling goin on? Wealth decrease when the price goes down, that is absolute. Take an example: A has 1 share of stock worth 100$, B has 100$. A sell the stock to B. Later the stock become 50$ and A buy it back. Now A has 50$ and 1 share so he has 100$ net worth. B has only 50$ net worth. Those who do not sell also has decrease net worth. You may ask where does the 100$ cash go, those went to pay off debts that we all carry (cars, mortgage etc) and get depleted quickly. Soon we have to sell more stock to get more cash. Tim