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

To: Chuzzlewit who wrote (80073)	11/13/1998 6:53:00 PM
From: gc	Read Replies (1) \| Respond to of 176387

Thanks for the information. Although I disagree with your views on psft board, I do agree with your view and respect your analytic skill on Dell board. gc

To: Chuzzlewit who wrote (80073)	11/13/1998 7:16:00 PM
From: KwanK	Read Replies (2) \| Respond to of 176387

I like this explanation better re: Kumar fnews.yahoo.com Nov 13, 1998 (6:04 PM ET) - The Motley Fool Evening News Dell Computer (Nasdaq:DELL - news) fell $5 1/4 to $63 15/16 after reporting another quarter of solid results last night. The company reported a 51% year-over-year increase in Q4 revenues of $4.82 billion and a 65% increase in EPS of $0.28. That amounts to sequential growth of 11%, which translates into annualized growth a percentage point better than the 52% year-to-date revenue growth the company also reported. Capital productivity again was stellar, with return on invested capital (ROIC) of 190%. If anything could be argued on this score, it would be that ROIC for the quarter was down from last quarter's 217%. With a company that is building infrastructure so quickly, though, a 27 percentage point decrease in ROIC can't be that badly criticized, as infrastructure never grows in a fully linear fashion. Lots of noise has been made today about the negative call Piper Jaffray analyst Ashok Kumar made on the company's desktop unit growth slowing during the quarter. The story for the quarter isn't just desktops, but overall sales and unit growth in all categories, including laptops, workstations, and servers. Which is more important: 11% sequential growth in units for $1,800 desktops, or 16% sequential growth in laptop unit sales and 29% sequential growth in enterprise unit sales? Dell can hardly be faulted on its desktop unit performance when you look at the overall product mix and maintenance in average selling price sequentially, especially when a shortage of Xeon chips held back enterprise growth during the quarter. The slowing-desktop-unit-growth thesis as a bottom line assessment of the quarter is way off the mark and is blind to the real story of how well Dell did this quarter Amen.