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

To: William F. Wager, Jr. who wrote (94792)	2/4/1999 2:09:00 PM
From: JRI	Respond to of 176387

Thanks William <eom>

To: William F. Wager, Jr. who wrote (94792)	2/4/1999 2:20:00 PM
From: JRI	Respond to of 176387

William- As I posted a few days ago, I find it odd and a bit disingenuous (sp?) that Kumar would state <But in the December quarter, Dell underperformed the market growing 33% sequentially vs. 60% for Compaq>.. First of all, I think his point here is that Dell underperformed Compaq and not the MARKET...I don't think the market grew more than 33% sequentially..so why is he quoted as saying that Dell underperformed the MARKET? Kumar knows (or should know) that Compaq's numbers is Q3 were less-than-normal simply because units reported for Compaq were sales INTO the channel and not OUT of the channel...In order to get its inventory down (from 8 to 4 weeks), Compaq sold little INTO the channel in Q3, and therefore, the increase in % units sold (from Q3 to Q4) is magnified..due to this factor...Compaq would not have grown anywhere near 60% sequentially without it.........Additionally, Kumar knows (or should know) that Compaq gets a consumer bump in the 4Q (that Dell does not get..) It would be more helpful if Kumar would try NOT to present skewed data to support his arguments...Thanks for YOUR contribution, William.

To: William F. Wager, Jr. who wrote (94792)	2/4/1999 5:07:00 PM
From: jim kelley	Read Replies (2) \| Respond to of 176387

Hehe.... Re: Sequential Growth DELL has only to grow an average of about 12-13% per quarter sequentially in order to maintain its awesome growth of the recent past. They certainly performed better than this average this quarter. It looks like CPQ stuffed their channels with an extra months worth of inventory. This is particularly evident in the giant increase in server shipments for CPQ in Q4. Typically these shipments do not go to the retail outlets but to VAR channels where they are less obvious. The huge increase in accounts receivables underscores the channel stuffing. They do not have to pay for the overshipments immediately hence the huge bulge in accounts receivable. CPQ actual growth in unit shipments is probably more in line with HWP's yoy growth. This year CPQ did not factor their accounts receivable like they did last year. It also looks like IBM engaged in channel stuffing. HWP on the otherhand looks like they avoided the channel stuffing of last year. It is ironic that Kumar and the others would seek to reward the stuffers over the more honest companies. Hence DELL , GTW and HWP are engaged in business as usual while CPQ and IBM are distorting the actual end user growth rates for Q4. This subject deserves more attention..... JK