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

To: Bretsky who wrote (98291)	2/12/1999 7:20:00 PM
From: HDC	Respond to of 176388

Bretsky, Take a look at the following: Inacom Touts Direct Strategies By Eric Hausman -Computer Reseller News New York 6:55 PM EST Thurs., Feb. 11, 1999 .............. Inacom Corp. Chief Executive Bill Fairfield said plans by major PC makers to sell direct is fine with him and he added that strategy will actually benefit Inacom. Speaking Thursday at the Goldman Sachs & Co. Technology Investment Symposium here, Fairfield said his biggest concern is the misconception that the channel will not have a place in the new model. "We are a big promoter of the direct model," Fairfield said. He explained that with IBM Corp., for example, setting pricing for the end user and handling other logistical issues regarding the hardware, Inacom can focus on what it does best: fulfillment and service. "Our position doesn't change," he said. "We're the essential link between the client and the OEM. The direct issue works to our advantage." Under the ideal scenario, the OEM would own the inventory, consign it to Inacom, then invoice the client and carry the receivable, Fairfield said. However, realistically, Inacom will probably need to put the inventory on its books but it will simply pass it through without any added costs, he said. Fairfield also highlighted the amount of business Inacom does with Dell Computer Corp. He said Dell sales mark the fastest growing part of Inacom's business. Inacom bought 15,000 Dell units in the fourth quarter and handled another 20,000 at the request of clients, Fairfield said. Inacom also promoted a "co-direct" plan where Inacom would work with the major vendors to get a customer's business. Chief Financial Officer Dave Guenthner said Inacom has already begun talks with the vendors on testing such a plan. In the meantime, Fairfield is trying to convince the investment community of Inacom's importance in delivering technology. He once again strongly stated that he believes Inacom's stock price is extremely undervalued. Inacom closed Thursday at $15.25 per share. He also said Inacom, once the Vanstar Corp. acquisition closes next week, will be a $7 billion technology services company and the number one procurement services provider for IBM, Compaq Computer Corp. and Hewlett-Packard Co. "http://www.crn.com/dailies/weekending021299/feb11dig09.asp" This may give you some food for thought. Best, Duncan