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


To: WBC who wrote (80036)11/13/1998 5:33:00 PM
From: Venkie  Read Replies (1) | Respond to of 176387
 
AFTER THE BELL - Dell shares rise
NEW YORK, Nov 13 (Reuters) - Shares of personal computer maker Dell Computer Corp. (Nasdaq:DELL - news) regained a little lost ground in after hours trading Friday after its shares dropped more than 5 points during the regular session.

Dell shares were trading up 5/16 at 64-1/4 on the Instinet electronic trading system after its stock tumbled earlier in the day following downgrades by several brokerage firms. Although the company on Thursday reported sharply higher earnings, the results failed to top Wall Street's most bullish expectations.

(Note: this article is ''in progress''; there will likely be an update soon.)

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More Quotes and News: Dell Computer Corp (Nasdaq:DELL - news)
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To: WBC who wrote (80036)11/13/1998 6:13:00 PM
From: RealMuLan  Read Replies (2) | Respond to of 176387
 
<<Can you please enlighten us as to why you think +earlie is a credible proof source ?>>

It sounds credible to me and it makes sense it explains what I observed, of course it may not to you. My profession has nothing to do with Computer industry, so I don't know what is really happening. At least Earlie's profession is related to the Corporate PC world, so he knows more than I do about it. It is a fact that US economy is going to be slow down, if not already did. SP500 3rd quarter earning growth was actually minus 3 percent according to First Call. So it is only logical that they lay off people and cut spending, which is of course including spending on PC.

Also from what I observed, Dell now is forced to expend to the individual consumer's PC market, proof for this: prime time TV commercial, starting to issue individual credit card, redesigned and better looking outer box for their hard disk, and redesigned catalog etc.... These things are costy, and this market has much lower margin than corporate PC market. Why? Your guess is as good as mine. So I don't want say more.

I bought a Dell computer about 2.5 years ago. Believe it or not, when I placed my order over the phone (they didn't have Internet order at that time, as I remembered), I was hung up by the first two Dell sale representatives. I yelled and screamed at the 3rd one, surprisingly, he took my order. Why the first two hung me up? Because every sales person wants to sell to corporate customers. Their single order at least contains 10 or more units. I only ordered one. And sales people are paid by commission, which is calculated by number of units, not by number of customers.

Of course, this is one main reason why Dell puts emphasis on expending Internet sale and ordering. To deal with individual customers on the phone takes too much resources. However, people need a computer to get on the Internet. And how many people want to buy two computers, not many, I would say.

This is just my opinion. I don't expect other people agree with me.

Good luck.