Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Michael Bakunin who wrote (111302)	3/23/1999 7:19:00 PM
From: BGR	Read Replies (1) \| Respond to of 176387

Michael, If technology saturates at 30% of GDP, we still have a good 15 years or so left at the present growth rate. That in fact roughly coincide with the average quarter century development cycle. So, are we looking forward to 15 more years of benign inflation IYO? :-) We have already covered the valuation argument and it all comes down to future earnings growth, where we differ and we will revisit this topic. As for diversification, storage, server and eCommerce should really be considered to be one business for DELL (based on it's past performance) IMO. I initially expected gigabuys.com to be a failure because of pricing pressures, but initial reports are favorable (I am happy to be proven wrong)! Perhaps what I overlooked was the fact that the corporate sector may treat gigabuys.com as a mini consulting division installing custom s/w (which given the Windows networking/architectural limitations and licensing issues may be quite painful and costly if done in house). In any case, it seems that gigabuys.com has decent margins and hence can only be accretive to both top and bottom lines. As for the IBM deal, there are too many rumors going around. I am adopting a wait-and-see approach. -BGR.