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: yard_man who wrote (112660)	3/26/1999 2:11:00 PM
From: Craig Lieberman	Read Replies (1) \| Respond to of 176388

tippet, RE: CDWC I wouldn't call them the darling distributor. I had a significant position in CDWC stock for close to 4 years during which I saw a great rise initially and then oscillating stock prices and earnings for around 2 years. The stock now seems more like a cyclical stock. I bought in the 40s and sold in the 70s twice in that time frame. Didn't participate in the last run-up this fall. Don't take their last quarter as any indication of recovery even if it has fooled the analysts into putting a big number on quarters going forward. CDWC is growing for sure by sending out more catalogs and hiring account reps, but they are just another reseller. They have better infrastructure and lower overhead than the other brick and mortar resellers like Best Buy and Computer City, but they are still the channel. If channel is losing to the manufacturers as the box makers start selling more direct, then I would expect CDWC to suffer the brunt of that sea-state change. So what if the channel has troubles over the next quarters, why does that mean an end to the gravy train for Dell. Seems like direct vendors like Dell and Gateway are best able to reap the rewards and resellers like CDWC will pay the price. BTW, great post on your bear position. We appreciate you explaining your reasons in detail so we can check assumptions. Much more useful than most "the sky is falling" types. Thank you Craig