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

To: Boplicity who wrote (111982)	3/24/1999 9:51:00 PM
From: Mohan Marette	Read Replies (4) \| Respond to of 176387

Yesterday I sent an email message to Michael Kanellos of CNET news,following is what I said and what he said in reply.Hope he gets a hold of the numbers soon. At 08:58 PM 3/23/99 -0600, you wrote: >>>> Michael: It appears the doom and gloom merchants of Wall Street have the upper hand in dictacting the direction of the market these days and more often than not only the negative news hit the press,here is a case in point.Everybody and his brother-in-law is blaming Dell for the downturn in the tech sector while they haven't done anything to foster this phenomenon,if anything it was Compaq and Micron who started it and not Dell. It seems only Bloomberg had the time to report what the Vice Chairman of Dell Mr.Rollins had to say about all this and his company.I wonder whether you could do something about it.Of course I have a vested interest in the company and hence the request but I am not requesting you to hype anything but rather just to write something about the facts as it is being reported. Much obliged for the time,hope I am not imposing. Best Regards Mohan Marette ======================= --Original Message----- From: Michael Kanellos <michaelk@cnet.com> To: Mohan <mohanmarette@earthlink.net> Date: Wednesday, March 24, 1999 8:16 PM Subject: Re: The purveyors of Doom and gloom and the market ....not at all. It's a weird issue. No one outright will say q1 stinks, but everyone is worried. A few are blaming compaq, while some others say Dell is the one that is dragging it down. Right now, I am just waiting for the numbers. The conclusive proof of what actually occured won't be out until then. Right now, too much smoke. ------------------------- Dell Vice Chairman Rollins Says PC Market 'Healthy' (Update1) Dell Vice Chairman Rollins Says PC Market 'Healthy' (Update1) (Updates with closing stock price.) San Diego, March 23 (Bloomberg) -- Dell Computer Corp. Vice Chairman Kevin Rollins said the personal computer market is ''healthy'' and there's nothing ''abnormal'' in the quarter to alarm investors about business at the No. 1 PC direct seller. ''We don't see anything right now to suggest that we are off the trajectory,'' Rollins said in an interview. ''Our business is very healthy.'' Dell fell 2 3/16, or 5.8 percent, to 35 11/16. The shares have dropped 20 percent in the past five days as concern mounted that the company may be shipping fewer PCs than expected in the fiscal first quarter while the average price is lower. Rollins declined to give specific forecasts for the quarter that ends April 30, though he said competitors aren't cutting prices aggressively to gain sales at corporations and Dell is winning many of those sales. At the same time, he reiterated that Dell isn't interested in selling bargain-priced machines that cost well below $1,000. ''We're still not trying to attract first-time users,'' Rollins said. Dell started selling a $999 model, though Rollins doesn't consider that the low end of the market anymore. Some machines from competitors cost about $600 and one manufacturer, Microworkz Computer Corp., is offering a $299 version. Slowdown Dell's shares have been buffeted since February, when it reported a slowdown in sales growth to 38 percent in the fourth quarter. Its shares fell 8.1 percent on Feb. 17. Today, Rollins said Dell should have been more aggressive in cutting prices to win sales at the end of the last fiscal year. As a result, the company's earnings increased more than planned and sales faltered. ''We didn't move fast enough,'' Rollins said. Rollins said there is nothing about the computer market that will keep Dell from growing as fast as it has historically, though there may be physical limitations for such an enormous company. Being able to hire enough people and build enough buildings are two potential restrictions. ''Sometimes, physics takes over,'' Rollins said. ''At some point, it will.'' For the last three years, Dell has been the best-performing stock on the Standard & Poor's 500 Index, increasing in value about 35 times from a split-adjusted 1 5/64 at the end of 1995. Attachment Converted: "C:\EUDORA\attach\The purveyors of Doom and gloom.gif" <<<<