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

To: stock bull who wrote (84032)	12/7/1998 2:07:00 AM
From: rudedog	Read Replies (1) \| Respond to of 176387

I did a fairly long post on this on the CPQ thread a month or so ago. Essentially, CPQ is moving up and down, whle playing a defensive game in the mainstream desktop space. They will increase the barrier to entry in the enterprise and also change the game in the consumer space. In both areas, hardware sales will be less and less important as services and alternate revenue streams build. Dell is focusing on excellence of execution and honing the financial engine that drives the company, and continues to pick battles they can win. As long as there are enough such battles, they will do fine, for no one can match their relentless approach to the markets they enter. But there are signs that they have harvested most of the low hanging fruit. They will have to either go into some areas where the ROIC is not as good and the mass added to the company will grow with each incremental dollar of sales (enterprise storage is an example - it is hard to get real penetration without a significant investment in engineering and services) or they will have to make a horizontal move. I think they will do the latter. If they had made stronger plays in 2H98 I would be much more comfortable with my investment in DELL - as it is, they will have to play some catchup in 1H99 which I think will cost them some growth. I have faith that they will pull it out but not until second half at the earliest.