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

To: PAL who wrote (109842)	3/17/1999 6:51:00 AM
From: Mark Peterson CPA	Read Replies (1) \| Respond to of 176388

FWIW - Todays WSJ March 17, 1999 Tech Stocks Bulls Hope Signs of Strength In PC Sales Will Buoy Market By MARIA V. GEORGIANIS Dow Jones Newswires NEW YORK -- Technology-stock bulls are hoping that new signs of healthy personal-computer sector fundamentals will push the Dow Jones Industrial Average's brief flirtation with the 10000 mark into a longer affair. In a matter of just a few weeks, investors will realize that first-quarter concerns about underlying demand for PC hardware were blown out of proportion, according to Bob Herwick, principal of Herwick Capital Management. Several market observers believe tech stocks have finished correcting and should begin to turn around and spill into the broader markets. "I don't think this market can really rally over 10000 and stay there unless the tech group is joining in a solid way," Mr. Herwick said. The industrial average touched the 10000 mark briefly Tuesday morning before falling back to show a small loss. The Nasdaq Composite Index gained 7.83 to 2439.27 and Morgan Stanley's high-tech 35 index added 9.34 to 989.53. The debate over the strength of the PC market began last month when Dell Computer announced fiscal fourth-quarter revenue growth that was below expectations. A few weeks ago, Compaq Computer indicated that its February PC sales weren't as strong as it had hoped. Last week, bellwether Oracle added to the overall sector concerns when it reported lower-than-expected software revenue growth for the third fiscal quarter. On the PC front, the first quarter's interruption of the fourth quarter's robust revenue growth, aside from being chalked up to a typical seasonal slowdown, is increasingly being interpreted as affected by a chip transition. Intel unveiled its Pentium III chip during the quarter. Computer makers, anticipating the transition, eased off shipments of PCs with Intel's Pentium II chip, Mr. Herwick said. So in hindsight, growth is actually "stronger than it seemed in the past couple of months," he said. "The fundamental backdrop for techs is as good as you can ask for," said Roger McNamee, principal of Integral Capital Partners. "All the evidence so far suggests business as usual" for PC hardware growth, Mr. McNamee said. He noted that he doesn't expect "an enormous number of negative surprises" for the first quarter. Mr. McNamee said he expects overall PC unit growth in the midteens as a percentage and single-digit gains in revenue. Market research firms are calling for similar results. International Data Corp. expects 14.3% unit growth world-wide this year and 4.8% revenue growth. This quarter, IDC expects a "healthy" 14.1% unit growth from a year ago. Microsoft last week confirmed for many investors the sense that the PC industry is on track for mid-teen growth in units, said Jay Nakahara, a tech-stock portfolio manager with investment company Invesco. The software company's Windows operating systems runs on 90% of the world's PCs. But other analysts remain cautious and are betting on the sector to continue in a "correction mode." "A lot of stocks could get cut in half," said William Fleckenstein, manager of hedge fund Fleckenstein Capital. "Anything related to PCs is in big trouble," he said. The rising importance of sub-$1,000 computers will be a "tremendous crimp" on profits for PC makers and component manufacturers, Mr. Fleckenstein said. In addition, most of the technology purchasing to prepare for the year 2000 computer glitch is already over with, he said. There has also been a greater amount of talk about declining average selling prices, and the need for investors to focus more on revenue growth than unit growth. In a recent report, Merrill Lynch & Co. analyst Steven Milunovich said if average selling prices don't improve this year, that could lead to price wars and make it difficult for the top PC makers to meet their revenue targets. Tuesday's Market Activity Elsewhere in the tech sector Tuesday, Cyberian Outpost rose 2 7/8, or 16%, to 21 3/8 on the Nasdaq Stock Market. The Web retailer launched an online auction site, OutpostAuctions.com (www.outpostauctions.com). Xoom.com fell 5 7/8 to 63 3/4 on Nasdaq. The Internet direct marketer filed with the Securities and Exchange Commission to offer four million common shares, two million of which are to be sold by the company, Federal Filings Business News reported. The remaining two million shares will be sold by selling shareholders. The offering includes 600,000 shares for overallotments. ASM Lithography added 3 1/8, or 7.4%, to 45 9/16 on Nasdaq. Morgan Stanley Dean Witter raised its rating on the stock of the chip-equipment maker to "strong buy" from "outperform." Go2Net rose 12 5/8, or 11%, to 126 on Nasdaq, marking a second day of sharp gains. The stock soared 26 3/8, or 30%, Monday after billionaire Paul Allen said he agreed to take a controlling stake in the Web portal (see article). LTX added 7/16 to 5 3/8 on Nasdaq. Needham & Co. raised its rating on the stock of the chp-equipment maker to "buy" from "hold." Vignette slipped 3 1/2 to 70 on Nasdaq. Morgan Stanley Dean Witter initiated coverage of the stock of the Web-publishing software maker with a "neutral" rating. Hambrecht & Quist started it at "buy." Both were underwriters of Vignette's initial public offering last month. Think New Ideas added 1/8 to 10 on Nasdaq. Think announced that it has acquired Envision Group, a marketing-services firm that specializes in interactive marketing for automotive and telecommunication clients. Think said the aggregate purchase price won't exceed $9 million in Think New Ideas common stock. Envision has just over 30 employees and was founded in early 1991.

To: PAL who wrote (109842)	3/17/1999 9:46:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 176388

DELL bets on Direct Sales in emerging markets-Target-> Critical Mass. Paul-san Here is a bit more detailed report on Dell strategy in emerging markets, India in particular. It seems like Dell's new hire Mr.Goh is going for the kill in Asia. ======================== Taking over Dell's Asia operations only recently after stints in Digital and Compaq, Mr. Goh has aggressive plans for the entire region. His immediate objectives include sustaining the growth in Asian markets at the current 70 per cent year-on- year average, well above the industry figure. Mr. Goh expects to take Dell into the top two positions in all the regions in Asia where they have direct operations and achieve significant growth in other Asian regions. .... Mr. Jimmy Yam, Managing Director, South Asia, Developing Markets Group, Dell Computer Asia, said: ''People said the same thing when we entered China - that our direct sales model won't succeed. But we proved them wrong and our business in China is doing extremely well.'' ===================== Aggressive strategy for India DELL Computer, to have a greater presence in the Indian market, plans to pump in between $5 and $10 millions besides looking at the option of upgrading its liaison office into a more direct operation office within the next year. The plans include investment in human resource development, including beefing up its indirect sales channel through better and wider support partnerships. Dell is expected to focus on working closely with its partners and major corporate customers in India. Also in the pipeline are many sales and support-linked incentives as well as promotional pricing on Dell products slated to hit the Indian markets soon. Mr. Ron Goh was not very optimistic about the company using a mass market distributor to penetrate the lower end of the market. ''Nothing is impossible, but it is very improbable that we would enter into distribution agreements with partners like CHS Karma, Ingram Micro etc to reach out to the mass market,'' he said. Immediate plans in India include targeting 100 per cent growth during 1999. Mr. Goh said Dell hoped to achieve critical mass in the Indian market shortly. ''This will put us in line with the other players in the Indian market and enable us to compete better and more aggressively.'' Dell has worked out a two-fold strategy to penetrate the Indian market. First, the company will work towards improving brand awareness and educate potential customers about Dell's strategy, business and its commitment to the market, including the customers. A series of seminars, workshops and conferences is planned to achieve this. The second part of the strategy is to tackle the government sector. Mr. Goh said the company would compete aggressively in bulk government tenders as well as government departments like telecommunications, finance, customs, excise and defence. To read the full report go to:-> hindubusinessline.com