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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Daniel Joo who wrote (49534)	3/3/1999 8:43:00 AM
From: sammaster	Respond to of 132070

dell may pop by making itself into an internet retailer and splitting soon....in actuality margins on all the products it is getting into will be as razor thin as the pc's it sells now with all the new competition on the web.... samir

To: Daniel Joo who wrote (49534)	3/3/1999 10:24:00 AM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Daniel, It has been obvious for a while that Dell has to diversify to keep any growth at all at their co. The problem is, there are very few high margin businesses where their one trick, quick inventory turns, is not already standard practice. Also, how many electronics retailers do we see with pe ratios of 77 times? 20 times is more standard. So, you get extra costs on low margin products. Sounds like this is another desperate move that will need to be spun to the ignorati at the company meeting in April. MB