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

To: Knighty Tin who wrote (103876)	2/22/1999 4:30:00 PM
From: SecularBull	Read Replies (1) \| Respond to of 176387

Michael, it seems that ~$3.0B opinions would have disagreed with you on this day. Your opinion about the Company's stock price is duly noted, but an opinion nonetheless. I don't remember Dell calling for slower revenue growth, necessarily. And lower margins is actually a return to historical norms for the company. As a long-time owner and follower of the Company, I understand these things. Regards, LoD

To: Knighty Tin who wrote (103876)	2/22/1999 5:35:00 PM
From: jim kelley	Read Replies (2) \| Respond to of 176387

MB, DELL's stock price has been for the most part following its earning growth rate. If its earnings growth rate contracts then its PE is likely to contract. This is what in part caused the fall from 110 to 80 recently. However, one quarter does not a trend make. If DELL can increase units sold this quarter by 264 K, it will resume its normal growth rate. Is it possible for DELL to do this? I think the answer is yes. DELL appears to have come into Q1 with 100K units in its production pipe and it has reported closing its corporate bids last quarter at greater than a 50% rate. So it means that they have become very aggressive with their corporate customers in winning the bid. I think the mistake that DELL made was in thinking that branding their product would yield a higher margin. I think branding just qualifies you to compete with the other brands in corporate circles. After that it is total package costs. TM and MD acknowledge this error in their art and have taken steps to remedy the problem. The channel stuffing by CPQ and IBM will tend to work to DELL's favor as the new INTC processors obsolete stale their inventory. But DELL does have to put its numbers on the board. JK