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

To: BGR who wrote (80105)	11/13/1998 8:35:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Apratim, there are really two issues involved. The first is the price of the component, and the second is the opportunity cost of holding the component. The opportunity cost is a major factor that would more than mitigate increasing component prices. Holding components not only sucks up capital (which could be invested at a rate equal to the average cost of capital by repurchasing shares), but exposes the company to holding costs (warehousing) as well as the risk of obsolescence. TTFN, CTC