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

To: Richard Tsang who wrote (80185)	11/14/1998 3:20:00 AM
From: K. M. Strickler	Respond to of 176387

RT, Good points made here! Can't address them all, but how about this: >>- The accounts receivable jumped to 40 days from 37 in a quarter. << This may not be under the control of DELL! It may be due to the problems that the companies that use the DELL computers are having at this time in their own organizations. I also don't know what kind of deals that DELL may have made with the various companies. Maybe the orders ar large enough to need a longer time! < - Yeah! Large orders, that's the ticket! VBG > >> Accounts payable also jumped 4 days to 56. << You've heard CHUZZ talk about the CCC (Cash Conversion Cycle) and know that the longer that cycle is without 'going over the limit' the better it works. Look's like it is approaching the 60 day max limit. Could be 'fine tuning' the system. I personally was encouraged at the remarks and can't understand why the market decided to take such a 'swipe' unless the market was setting it self up to be able to 'load up' at a reduced price. Regards, Ken

To: Richard Tsang who wrote (80185)	11/14/1998 10:36:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 176387

Excellent and probing concerns. Richard: Some random thoughts on your concerns. 1)'Why has Dell been able to report a 10 point higher increase in diluted EPS over its net income growth? I suspect that is due to the share buy-back which results in a reduction of shares outstanding.' If I am not mistaken this has been the case with DELL in most quarters and don't know why you will take this as a negative. I don't know about you but I rather see DELL grow their earnings faster than the revenue,I would be a bit concerned if the the opposite were to occur. 2)"Why the slow down in buy back?" I don't know the exact answer to this but I go along with your assumptions as DELL has about 5 new plants that is either completed and functioning and or in progress during 1998.I consider these investments are more important for the future growth of the company than any share buy-backs,simply put better use of funds. Message 6408696 3)'Days in Accounts Recivables/Accounts Payables.' Excellent observation,I did notice it too.The CFO is quite aware of this and I am sure he will do the needful. Another point is that +3 Days jump in A/R is well balanced by +4 days jump in A/P. I am also assuming there must be a very good reason for this to have happened, such as a few important and large corporate sales where a few days of A/R is given up to accommodate the sales,if so I consider this as savvy business practice rather than mismanagement of fiscal affairs. Please note there is no other company that I know of who manages their financial affairs better than DELL,look at the ROIC you will know what I mean,it went up some 12% from the year ago quarter. Message 6414260 I for one am quite impressed with DELL's performance quarter in and quarter out.Dell's numbers are quite impressive by itself but if anyone wants to get blown away just compare Dell's numbers to that of its peers in the industry,I believe that will do the trick. The problem is when analysts tries to set a special and separate standard (quite unfair I might add) just for DELL. Anyway thanks for pointing out some important points of concern,I for one enjoyed your questions even though I am not sure my answers will satisfy you but I have tried. Hope someone better informed will come along & have a go at it.