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

To: jhg_in_kc who wrote (79914)	11/13/1998 1:44:00 PM
From: GRANOLA	Read Replies (1) \| Respond to of 176388

jhg - IF I MAY SUGGEST - QUIT WORRYING ABOUT "VG'S ASSERTION THAT DELL WILL NOT BE THE SAME"! I keep seeing this on the thread but think about it...had DELL blown out the #s, then "Dell would never be the same" because it would be 80 right now and climbing...and if it would have missed the # we know it would be 50 right now...we are somewhere in between while the hype settles, that's all. Kumar took the easy road to standing out from the others by being conservative about dell's earnings...we'll see when he does the same next quarter and Dell beats the # by more than a penny. (which will be even better if expectations dwindle a bit here) JMO Take care, GR

To: jhg_in_kc who wrote (79914)	11/13/1998 2:01:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176388

jhg, actually I have a lot of thoughts on this issue. Growth of existing product lines will definitely slow, because Dell cannot be bigger than the market it operates in. If the market for PCs grows at 17% per annum, there will come a point when Dell's sales growth will equal 17% per annum. Remember, the bulk of Dell's growth has been at the expense of the other players. If Dell grows three times faster than the market, that almost necessarily means that other players are growing at less than the market. In other words, Dell's growth is not due to an innovative product, but to out-competing existing players in an established (although rapidly growing) market. BUT, what most people seem to ignore is the fact that businesses evolve. IBM does not sell Selectric typewriters anymore. So I believe that Dell will look for new growth areas. Moving into mass storage was one such foray. Look for others. I believe that xDSL equipment has been discussed in this connection, but look for a lot of others. I have no direct line to the stock market gods (as apparently VG does), but I understand the dynamic of business. Either evolve or become extinct. That evolution is what lead Compaq to buy a service company. Compaq viewed itself as a computer company, so it was natural for it to parlay what it viewed as its major strength. But Dell isn't a computer company. It is a light manufacturer/assembler with a superb business model, and I look for it to capitalize on those strengths. TTFN, CTC