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

To: Mohan Marette who wrote (102295)	2/17/1999 10:05:00 PM
From: Smiley	Read Replies (5) \| Respond to of 176387

This stock will be single digits by Easter. The split gets us there twice as fast.

To: Mohan Marette who wrote (102295)	2/17/1999 10:27:00 PM
From: Jacktoad	Read Replies (1) \| Respond to of 176387

Mohan; Thanks for posting the Dell interview text from the NBR. I was trying to listen to it over the household noise here, but that was impossible. The kids loved it when I showed them the man who is paying for their college education( that would be Mikey of course ). I got a kick outta the fact that Compaq is a major sponsor of NBR. See, maybe we all can 'just get along'. JT

To: Mohan Marette who wrote (102295)	2/17/1999 10:30:00 PM
From: jim kelley	Read Replies (1) \| Respond to of 176387

Mohan, I have been reviewing the report and listening to the conference call. It looks like DELL tried to substantially increase its margins by changing its pricing policy in Q3. This cost them some business in Q4 which they could have taken by being more aggressive. The mistake here seems to be that they tweaked their pricing/margin model and it cost them some revenues. Meredith pretty much admitted that he made a mistake in Q3 and I think they will now put it to their competition under intense pressure for the rest of this year. The IDC numbers and the shift in ASP account for most of the revenue shortfall. DELL was not aggressive enough in the Enterprise or desktop arenas in Q3.Had they been more aggressive with pricing in Q3 with their enterprise products then the ASP number would not have dropped by $50. Now things will change! Also, I and a number of other people were misled by the new external storage sales numbers. I am satisfied as to why my own estimates were off. It is no longer a mystery. So I believe that people, including me, will be looking to see what DELL can do with the newly acquired pricing/margin/volume wisdom in the coming two quarters. Also, it looks like they are considering going after some piece of the subzero market! DELL should be able to profitably compete in that market because of their low cost structure. If it happens it will take huge unit marketshare a way from CPQ, IBM and HWP. It looks like another interesting year! Regards Jim Kelley