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

To: Mark Peterson CPA who wrote (101548)	2/17/1999 5:46:00 AM
From: Mark Peterson CPA	Respond to of 176387

Comments from Bloomberg on Dell in Europe trading Dell Shares Fall in Europe on Lower-Than-Expected 4th-Qtr Sales Bloomberg News February 17, 1999, 1:15 a.m. PT Round Rock, Texas, Feb. 17 (Bloomberg) -- Shares of Dell Computer Corp., the biggest direct seller of personal computers, fell as much as 20 percent in Europe after the company reported fiscal fourth-quarter sales that lagged some expectations. Dell shares traded in Germany fell as much as 17 euros ($19), or 20 percent, to 67 euros after the company said late yesterday that sales climbed 38 percent to $5.17 billion, less than the $5.5 billion some analysts predicted and the first time in nine quarters that sales rose less than 50 percent. Dell's growth is slowing as No. 1 PC maker Compaq Computer Corp. and other rivals sell more computers directly to customers, imitating a strategy that fueled Dell's rapid growth. ''That type of growth just couldn't go on forever, even at Dell,'' said William Conroy, an analyst at Sanders Morris Mundy in Houston, who rates Dell a ''buy.'' Dell also unveiled a 2-for-1 stock split late yesterday and said net income matched expectations, rising 49 percent from the year-earlier period to $425 million, or 31 cents a share. Still, analysts are concerned that the average selling price for Dell's computers has fallen, hurt by stepped-up competition from Compaq. In addition, Dell has ''saturated'' much of the corporate PC market in North America, limiting its prospects for future growth, said Ashok Kumar, an analyst at Piper Jaffray. ''There are a lot of negative variables that I don't believe are priced into Dell's stock,'' said Cody Acree, an analyst at Southwest Securities Group Inc. in Dallas, who rates the stock ''accumulate.'' ''There is more downside potential in this stock.'' Investors in Dell, the best-performing stock in the Standard & Poor's 500 Index for the past three years, have benefited as shares increased almost 1,000 times from a split- adjusted low of 3/32 in 1990. The shares touched a record 110 on Feb. 1 after more than tripling during the past 12 months. ''The stock has run up extraordinarily in the last four or five weeks,'' said analyst Lou Mazzucchelli at Gerard Klauer Mattison, who rates Dell ''buy.'' ''There's a built-in potential for people to feel a little queasy about Dell at such elevated levels.'' Dell is based in the Austin, Texas, suburb of Round Rock. --Loren Steffy in Dallas (214) 740-0870 with reporting by Paul

To: Mark Peterson CPA who wrote (101548)	2/17/1999 8:04:00 AM
From: Claude	Read Replies (2) \| Respond to of 176387

re: << Splitting again now will put the current outstanding shares at 2.4 bln and make any future earnings surprises and price gains even harder.>> Maybe I'm not the genius that this guy who writes this options newsletter is but how exactly does splitting shares make future earnings hard to obtain? Lets see we make .31 this quarter / or .15 1/2 per post split share. If they make .31 next quarter based on post split is this guy telling me that people are going to think earnings are standing still?? What am I missing here? Claude (rhymes wiht TOAD)