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

To: Mohan Marette who wrote (99489)	2/15/1999 11:26:00 AM
From: stockman_scott	Read Replies (1) \| Respond to of 176387

Great Post Mohan: This stock will continue to ROCK long term!! I really like the following passages from the Austin newspaper article: <<Dell hasn't struggled with inventory build-up because, under its direct model, computers aren't assembled until they are ordered and paid for. In addition, having no inventory of computers with dated technology enables Dell to incorporate the latest microprocessors and other components immediately. Dell says its online sales total more than $10 million a day. "The direct model is the main reason I feel so strongly about Dell," said Nuss, the Austin investor. >>

To: Mohan Marette who wrote (99489)	2/15/1999 11:32:00 AM
From: OLDTRADER	Read Replies (1) \| Respond to of 176387

Dell traded 33% of it's float last week.It's the same old question "what would you have paid to buy CPQ in 1976?"Answer: whatever you could talk others into selling you there stock for based on how badly you could depress their euphoria.at thathe moment of purchase.You just have to have guts and a firm belief that DELL will soon "take over the world of purveying personal computer equipment".Tell me who is going to beat them-go ahead tell me!

To: Mohan Marette who wrote (99489)	2/15/1999 1:59:00 PM
From: Don Edgerton	Read Replies (3) \| Respond to of 176387

Just received a new Dell catalog. It has a home package for about $4,600. Dell's focus is on the affluent home user who will look at DELL as a MBZ or BMW and the cheap Compaqs as Ford Aspires. If DELL is building new plants, it must be capacity constrained. If capacity constrained, then focus on the high end. Some years back, the U.S. negotiated quotas on the number of Japanese cars entering the market. Japan's answer was to upscale the lines and bring in highr priced cars at their quota number. This led to the Camry and eventually to the Lexus and Infinity moving the Japanese cars to an upscale image. Believe Dell is trying to differenciate itself in the same way. I too have heard derogatory remarks about CPQ from enterprise users. My one experience with their customer service was not good. Just wanted to know how to get to the memory slots on a 4504 - a model built just to use excess Pentium 200 non-MMX chips. The memory was under the power supply. With the BTO models of CPQ (and IBM) where they are using resellers to build the machines, how is CPQ going to provide good customer service? Reder the client to the reseller, who may have had a one time contract to supply a user. When you call DELL, you give them the serial number and they have the config and customer service history at their fingertips. Cost of ownership is the real issue for business, not unit cost. Companies offering themselves as a single supplier globally who can configure to specs and provide a uniform ordering experience are going to be the winners. Dell seems to be closest to doing that with its proprietary home pages for individual companies, uniformity of support and by selling machines with enough gross margin to afford free customer support during the warantee period. (By the time three years is out you need a new machine anyway.) This is why Lucent and CSCO sem to be gaining ground as they add to their product lines. Just some ramblings on my day off.

To: Mohan Marette who wrote (99489)	2/15/1999 2:09:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Mohan, this part of the quoted article is quite misleading: But recent data on worldwide PC sales for 1998 suggest Dell's meteoric rise may be slowing, a factor that also was cited after the stock's fall on Friday. According to International Data Corp., Dell's fourth-quarter computer shipments in the United States were only 2.6 percent higher than the third quarter. Meanwhile, industry shipments grew 13 percent. The reason is quite simple, really. First, the data from the various marketing companies measures factory output, not sales to the end consumer. The fourth quarter includes the period October through December (can you say Chrismas?) which means that companies using channels typically fill them in November and December. The data do not show how much is still in the channel at the end of the period (were the channels stuffed?). Second, companies like Compaq and IBM do quite a bit of retail sales, while Dell's sales are pretty much concentrated in the corporate arena. It is not unexpected to see a falloff of corporate sales during December and an acceleration of consumer sales during November and December. This suggests the need to seasonally adjust the data. For example, PC shipments for all US vendors increased 13% sequentially in the fourth quarter. But that would extrapolate to more than a 63% unit growth rate in computers -- clearly an overestimate. TTFN, CTC