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

To: abraves who wrote (93857)	2/2/1999 7:35:00 AM
From: Patrick E.McDaniel	Read Replies (1) \| Respond to of 176387

abraves, I am not a member either. We will both have to wait to get the details. Notice Dell shares trading in Europe. finanzen.yahoo.de*&detailed=f Pat

To: abraves who wrote (93857)	2/2/1999 7:36:00 AM
From: BBG	Read Replies (3) \| Respond to of 176387

For those of you who aren't subscribers to TSC... here are Greenbergs comments on the reaction his article on DELL got.... BBG The Hostile React-o-Meter Spins Out of Control By Herb Greenberg Senior Columnist 2/2/99 6:30 AM ET The Tuesday Trounce: Dinging Dell, a follow-up: Don't ask me whether Piper Jaffray's Ashok Kumar will be right or wrong on his analysis of Dell Computer (DELL:Nasdaq), which he still ranks an aggressive buy. All I can say is the guy stepped forward yesterday with some sobering stats that, based on my emails after yesterday afternoon's item, nobody wants to hear. (You shoulda seen the Hostile React-o-Meter spin! It was outa control, I tell ya!) Maybe that's because Dell investors, enamored with the prospects of a split, don't want to hear any news that could cause Dell's stock engine to stall. Maybe it's because betting against Kumar has been a way to get rich. Or maybe it's because, quite frankly, yesterday's item left some good grist. It merely said that Kumar believes Dell's revenue growth, sequentially, shows a slowdown in its fourth quarter, which ended Jan. 31. Sequential growth is important for investors following growth companies, because if a company is truly growing, the rate of growth should continue quarter-to-quarter as well as quarter-over-quarter. With PC companies, it could be argued, the rate of revenue growth is more important than the rate of earnings growth because it shows true sales and doesn't get distorted by price cutting, tax rates and other actions companies can take to make themselves look prettier than they really are. Unfortunately, Dell's quarter ended one full month after the rest of the PC pack, and results won't be reported until Feb. 16, so it's hard to do a true comparison of its fourth quarter. So Kumar did a comparison of Dell and its three leading competitors based on calendar quarters. Said Kumar: "Dell's worldwide sequential growth rate in the December quarter was well below both the market and H-P [Hewlett Packard] (HWP:NYSE), which has been hemorrhaging for quite some time. In the U.S., which has 60% of unit mix, Dell barely showed any sequential growth. Europe, 26% of units, historically has been the fastest growth region for the company. But for the December quarter, Dell underperformed the market, growing 33% sequentially" vs. 60% for Compaq (CPQ:NYSE). But, hey, based on Dell's stock, this guy's warnings have looked downright foolish, right? So, why must I continue to give this one analyst a platform? Because at 50 times 2001 projected earnings, everything has got to go right to justify the current price. Dell currently trades at a valuation in line with Microsoft (MSFT:Nasdaq) and Cisco (CSCO:Nasdaq), based "on its superb execution, not a unique product proposition," Kumar says. He adds that with its growth rate moderating, "and better execution from its peers, the risk of multiple contraction should be factored in." Did he say risk? And the guy wonders why he doesn't have any credibility.