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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Earlie who wrote (47095)	2/14/1999 9:48:00 PM
From: BGR	Read Replies (1) \| Respond to of 132070

Earlie, Do you mean to say that DELL discovered some distasteful news about revenues around Thursday, two days before earnings announcements, when their BTO-JIT model should have raised the flags for them long back giving them ample time to lower expectations? Also, the whole point of lowering expectations is to engineer a soft landing and not the kind of big splash that happenned Friday. Doesn't look like a leak to me. -BGR.

To: Earlie who wrote (47095)	2/14/1999 9:53:00 PM
From: gbh	Read Replies (1) \| Respond to of 132070

Most companies recognize that when there is some distasteful news to be digested by the market, the best way for this to happen is to encourage analysts to lower their estimates before the numbers are released. Earlie, I agree. But this usually comes in the form of public disclosure, and always with enough time prior to earnings for analysts to actually revise the estimates. In DELL's case, no one is questioning the eps, and there simply is no time for a new consensus view on revs. So CNBC can't really say anything different on Tuesday than they would have before this "news" hit. If DELL actually does hit eps and come in at Niles revs estimate, they stock will likely see 80. If Niles hadn't stood up, I contend the actual fall might have been substantially less. So in this case, I see no actual advantage to DELL in having leaked this info so close to the actual earnings announcement. Except perhaps if Kansas' version of the conspiracy theory is true. I don't believe his view either, though. Gary