Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Diabolique who wrote (95676)	2/7/1999 3:46:00 AM
From: Jake0302	Read Replies (4) \| Respond to of 176387

From the optioninvestor Newsletter From their 10Q filed with the SEC December 14th, we glean the following: During the third quarter and first nine months of fiscal 1999, enterprise unit sales increased 112% and 165%, respectively, compared to the third quarter and first nine months of fiscal 1998, and increased sequentially 13% over the second quarter of fiscal 1999. Notebook unit sales increased 141% and 123% in the third quarter and first nine months of fiscal 1999, compared to the same period of the prior fiscal year, and increased sequentially 16% over the second quarter of fiscal 1999. Net revenue increased in all geographic regions in the third quarter and the first nine months of fiscal 1999 as compared to the same periods of fiscal 1998. Net revenue for the third quarter of fiscal 1999 compared to the third quarter of fiscal 1998 increased 46% in the Americas, 68% in Europe and 49% in Asia-Pacific and Japan. Net revenue for the first nine months of fiscal 1999 compared to the first nine months of fiscal 1998 increased 48% in the Americas,67% in Europe and 39% in Asia-Pacific and Japan. Red Hat Software announced Friday that Dell is certified and compatible with Red Hat Linux operating system, an open architecture, free-ware operating system. Dell announced too, that they would open their Ireland plant in 1999. Understanding "why" is important. According to Michael Dell, Dell generates $10 mln. revenue per day from the web sales. $2 mln. Comes from Europe and is a cornerstone of their growth. FYI, Mr. Dell says Dell had around nine percent of the world personal computer market, with 1999 sales expected to reach around $25 billion. "If we have a 25 percent share in, say, five years, that would mean revenues of $80 billion a year globally -- you can see the importance of Europe's potential in that." BIG NEWS... Word has got out that DELL just recently registered for a new domain name. Dellauction.com Immediately, speculation ran amok about Dell's intentions with their new site. Were they going to compete with the likes of Ebay and Amazon.com? Dell does have the 16th most visited site on the entire web. You could do a lot of things with that kind of traffic. Obviously, Dell knows this. Already they sell millions in hardware everyday over their existing website. However, the odds that we will be going to Dell's new site to buy CDs and movies is not likely. Dell has perfected their business model and is not likely to clutter it up with the NY Times best sellers list. A great article about Dell's new web address and the possibilities can be found at the address below. www.smartmoney.com/smt/stocks/index.cfm?story=19990205 Plus, it appears Dell is going to share their Feb. 16th conference call with the world. At the address below is news and a link to hear their conference call over the web. This could be a great week to play DELL! www.dell.com/corporate/investor/earningscall/021699/

To: Diabolique who wrote (95676)	2/7/1999 9:43:00 AM
From: Kenneth Aird	Respond to of 176387

I just bought a Dimension through the Dell outlet. The web site only lists "sample" configurations, not the up to date inventory. You have to talk to a sales rep to find out what they really have available. This may have been intentional so the rep could steer me to a more expensive system, but an automated auction would eliminate some overhead cost of staffing the phones and might do an even better job of "price improvement". The outlet site states that the reason they have any inventory is the 30 day satisfaction guarantee. As they state on the site, most of the time returns are not due to any problem with the hardware, but Dell, like most retailers, does not ask questions. Customer loyalty is far more valuable than the cost of taking returns. I don't know Dells return rate, but I think the industry average is on the order of 5%. Even if Dell is much lower due to superior customer support, with their huge daily shipments that could amount to a significant business. Dell lives on a tight net profit margin. Much higher than the rest of the box makers, but still tight. Even a small improvement in the selling price and reduction in the overhead of selling off returns could have a significant impact on the bottom line. Perhaps even more significant would be the opportunity to sell excess inventory of partners who's products Dell sells. Many of these are not built to order and have large inventory risk during product transitions, which are happening more and more frequently. This is how Onsale built their business. This business would be pure gravy for Dell as they could well earn as much or more commission auctioning a fire sale item from another company as they make selling a new one. The canabalization is at the expense of the supplier. Ken