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

To: Frank Ellis Morris who wrote (83877)	12/5/1998 6:50:00 PM
From: stock bull	Read Replies (3) \| Respond to of 176387

Frank, re:<<The big boys are now pushing Compaq over Dell. Why do you think they are doing this??>> Two main reasons. First, the PE for Cpq is around 30, however, I would need to check this figure. Second, its rumored that Cpq will spin-off Alta-Vista, a 1 billion dollar deal. Taking Alta-Vista public will be another internet stock IPO, and we all know what this means. With respect to Cpq going direct. We need to recognize that they really will have a hybrid model. To my knowledge, they are going to keep the retail store (channel) as well as selling direct. This puts Cpq in direct competition with the CompUsa, Best Buys, etc. IMO, this direct competition is going to adversely affect sales. I just don't see how they can have it "both way" and still become as efficient as Dell. One thing that I've learn over the years is that its very difficult to take the lead from an established company by being a copy-cat. By the very fact that Dell was there first gives them a major advantage over the competition. In no way is this to infer that Dell can relax and take it easy. They must continue to innovate and stay ahead of the competition. The only problem with Dell is the expectations that the MM have placed on the company. In some ways, Dell is now their own "worst enemy". This is a high class problem for Dell, but still a problem. Only time will tell how this transition to the direct model plays out in the sector. Stock Bull

To: Frank Ellis Morris who wrote (83877)	12/5/1998 7:27:00 PM
From: Mohan Marette	Respond to of 176387

Hype'em and dump'em that is what they do (The big boys).<g> Frank: On a lighter note:- The big boys have to keep moving from one to the other, they can't possibly just follow one stock,no money in it and besides they will be out of biz all they have is just one stock to follow,besides they always seem to have an agenda of their own which could be primarily making money for themselves while giving the shaft to the little 'Joe-six-packs'. Here is one possible explanation of CPQ'S direct model in comparison to DELL's in case you missed it. Message 6700479