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: Skeeter Bug who wrote (111612)	3/24/1999 12:28:00 PM
From: Eggolas Moria	Read Replies (1) \| Respond to of 176387

More fodder for the DELL thread to ruminate over, from Bloomberg. Dell Even Dell Computer Corp. isn't immune. The No. 1 direct PC seller and best-performing stock on the Standard & Poor's 500 Index for three years running may be shipping fewer machines than expected this quarter. At the same time, its average selling prices are dropping, one analyst said. That's led at least one analyst to cut profit predictions and forecast a second straight quarter when sales rise less than 50 percent. ''Fifty percent-plus growth (for Dell) is history,'' said Kumar. Dell's growth is slowing as Compaq and other rivals sell more computers directly to customers, imitating a strategy that's helped Dell vault past competitors. Dell's sales are forecast to rise about 36 percent to $5.35 billion in the quarter ending April 30, following 38 percent sales growth in the fourth quarter. Earnings are expected to rise to 16 cents a share, from a split-adjusted 11 cents. Less Buying Part of the problem is that businesses aggressively replaced older machines for the past three years as newer technology came out. Now there are few software programs that require new PCs and more reasons to hold off buying. Companies like Bayer AG North America, which uses only Dell computers, have slowed the addition of new PCs. Bill Gaughn, who oversees technology purchases for Bayer in North America, said the company has replaced its entire base of PCs since mid-1997, but is now just renewing leases and doesn't have plans to add new machines. That's already hurt companies like Hewlett-Packard Co., which in February reported fiscal first-quarter sales lagged expectations. H-P was particularly hurt by lower prices for printers and personal computers. IBM, the world's largest computer maker, is struggling with slower-than-expected sales of all computers. That includes PCs, which are being crimped by falling prices, analyst Niles said. Micron Electronics Inc.'s fiscal second-quarter sales slid 25 percent, and the No. 3 direct seller of PCs reported earnings this week that dropped in line with reduced expectations. Ingram Micro Inc., the world's biggest wholesale distributor of PCs, said it will cut 10 percent of its workforce and warned that first-quarter earnings will lag forecasts. Consumers The companies most likely to benefit this quarter are those with strong consumer lines. Apple Computer Inc. will do well in its second quarter ending next Wednesday thanks to its multicolored iMacs and new, powerful G3 computers. Apple is expected to earn 57 cents, compared with 42 cents a year earlier, according to analysts polled by First Call Corp. Gateway 2000 Inc. also is expected to have higher earnings. The No. 2 direct seller of PCs is expected to earn 60 cents a share, according to First Call. Kumar said the company could do even better. A year earlier, Gateway's profit was 48 cents. PC unit shipments are forecast to rise about 13 percent in the second quarter from a year earlier, according to IDC. A rebound in Asia Pacific and Japan after big declines last year could help boost shipments. After that, the outlook gets cloudier. If Year 2000 issues are resolved early, companies may buy more machines. If not, the second half could be rocky, analysts said. Total PC shipments are forecast to rise 14.3 percent in 1999, up 2.3 percentage points from last year. 1st-Qtr Year-Ago Number of Company Estimate Earnings Analysts Advanced Micro -0.55 -0.39 18 Apple# 0.57 0.38 18 Dell* 0.16 0.11 31 Compaq 0.32 0.01 32 Gateway 0.60 0.48 23 IBM 1.41 1.06 21 Intel 1.10 0.81 32 Micron Electronics@ 0.07 0.26 12 *Fiscal first quarter ending April 30 #Fiscal second quarter ending March 31 @Actual results for fiscal first quarter ended March 4, year-ago results include $156.2 million gain

To: Skeeter Bug who wrote (111612)	3/24/1999 12:47:00 PM
From: D. Swiss	Read Replies (4) \| Respond to of 176387

Skeeter, this one is for you: trap-supply.hypermart.net All I can say to you my friend, COVERRRRRRRRRRRRRRRRRRRRRRRRRRRRR!!!!!!!!!!!!!!!!! :o) Drew

To: Skeeter Bug who wrote (111612)	3/24/1999 1:20:00 PM
From: BGR	Read Replies (1) \| Respond to of 176387

Skeeter Bug, That's old news to start with. Two of the articles focus on the low-to-lower end retail sector which DELL has been avoiding for some time and has recently reiterated their continued plan to do so. So I do not quite understand why you continue to find the retail sector's woes as relevant to DELL. As for IBM's sub 1K business PCs, two comments: One, these machines do not have the average muscle required by a business PC from my personal experience. At best, they may work for call center type of situations. IBM is also reported in the same article to provide a more capable machine with a price tag in the 2k+ range. Two, according to Gary Greenberg (I believe, but I may be wrong) IBM is losing a sizable chunk of money (somewhere in the BB range) in it's PC business on an yearly basis. How long do you think this will continue? Not all companies are AMD-clones, you know? -BGR.

To: Skeeter Bug who wrote (111612)	3/24/1999 1:20:00 PM
From: JRI	Read Replies (3) \| Respond to of 176387

Skeeter Bug- Over the last few days, you have (again) come on the thread, and listed your "the glass is half-empty" arguments concerning Dell... you views are not balanced, and this will lead you (if you are not careful) to investment pugatory.. I especially like how you list a URL for an article concerning troubles in the industry, and go ahead and highlight the last line "we are steering clear of the boxmakers", while FAILING to highlight the preceding words from THE SAME SENTENCE....TALK ABOUT SELECTIVE EDITING! WHY DIDNT YOU JUST GO AND ERASE THE FOLLOWING WORDS FROM THE ARTICLE: "ASIDE FROM DELL, we are steering clear of the boxmakers" I repeat, "ASIDE FROM DELL, we are steering clear of the boxmakers" This means, in case you didnt notice, that the author SUPPORTS Dell, and the fact that they are not trying to sell sub-600 boxs, and is not against it... But your mistake is typical of your posts......another example, your U.S. retail sales argument (article)...in which, you went on to generalize its effects for the industry, Dell...... You are typical of what I call a "bad" bear: (1) You post somewhat factually articles, which also contain, to a great extent, and then extrapolate to an (even further out) unlogical, exceedingly-fearful conclusion) (2) You are totally unwilling to recognize any positive trends in the industry/Dell (3) You have a very simplistic view of the market; You refuse to recognize (believe) that there are enormous distinctions between retail vs. corporate, low vs. high-end, big 5 manufacturer vs. white box, and on and on... as long as you maintain your simplistic arguments...your arguments will continue to be weak...Wow, by your posts, one would never suspect that Dell grew earnings at 49% last quarter, and EPS in the mid-50's.... The fear game will be up soon...