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: Mohan Marette who wrote (99628)	2/15/1999 3:10:00 PM
From: Grant	Respond to of 176387

Thought you folks would like to read this from TMF.... Subject: Re: Thoughts Date: 2/15/99 2:43 PM Author: zot9 Number: of 22743 I think your investment strategy is sound. I have a portfolio that is very similar to yours in core holdings. I increased my dell holdings earlier this year when the stock was trading at around 100. I did so because I think there will be some significant purchases by many companies in the 2ND and 3RD quarters of this year to help shore up infrastructure for the Y2K problems and initiatives. Also because I have owned Dell for 3 years and it has been my best performing stock hands down. I think dell has some significant advantages in thier direct model dispite the fact that other manufacturers "seem" to be catching up, mainly compaq. I am a sales manager at a company which is a Compaq reseller. I own a very small amount of Compaq stock but large amount of dell. Compaq announced it's primary direct initiative at the beginning of this year with a product line called "Prosignia" and a web site www.directplus.compaq.com. Some of the analysts may be reacting to the numbers coming out of this division which I have heard are 5 to 6 times the projected sales numbers. The key is that Compaq still has this huge Channel of resellers that it has to make happy. As a result of this if a reseller refers one of it's customers to the compaq site that reseller gets a 4-12% commission on the sales. This is to allow compaq to go direct but not piss of it's reseller base to much. Bottom line from what I've seen. Compaq is not handling it's direct department well. They have long shipping delays, our customers have reported delivery times of up to 5 weeks. The service people at the 800 number are unskilled and very unhelpful. The amount of people staffing the department can't keep up with the orders. They are unresponsive. We have had 4 orders completely lost from their system, without even a notice. So, others may be selliing more online, but they aren't doing it as well as dell, and they still have a reseller channel in the loop. Now, if Compaq can figure out a way to leverage it's reseller channel and make it an asset for service and support this could tip the scales in their favor. I like both Compaq products and Dell products but Dell is much more efficient. The Internet is where business is moving. All of our Integration projects this year involve porting applications to the Internet. The backbone companies such as the ones you've listed are key to this development. The next big factor. Who can deliver high speed Internet connections for low cost? Worldcom? Qwest? AOL?