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

To: jim kelley who wrote (112875)	3/27/1999 4:52:00 PM
From: Mike Van Winkle	Read Replies (1) \| Respond to of 176387

Jim, thank you for your past sober analysis of Dell issues, I have been in awe of this board and posters like yourself for a long time. Jim, You mentioned, "However, DELL is more likely to take part of the margin increase and use the rest to undercut the competition prices aggressively in the marketplace." In the last conference call, Tom Merideth said that margin can be traded off for increased revenue, with net effect being an increase in earnings. That would seem to me to imply that such a trade off that you mentioned would only increase earnings/share. These numbers are not as big as talking about cold fusion but I am having a hard time understanding why people are not excited. It seems like the numbers are realistic to me. Can you help me out here? Mike Van Winkle

To: jim kelley who wrote (112875)	3/28/1999 12:04:00 PM
From: Gabriel008	Read Replies (2) \| Respond to of 176387

Jim, thanks for the great information. Re. the reduction of 3%-5% on COGS is your calculation based on the difference between Compaq's and DELL's gross profit margins? On the Opex expenses [SG&A]I believe that the historical increases of [$25 million per quarter in fiscal 98 and the $50 million per quarter in fiscal 99]will continue to grow at a slower rate than their revenue growth suggesting that we will see Opex in the 9%-10% range [% of sales] in fiscal 00 and 8%-9% in fiscal 01. I don't believe we will see much below the 8% range beyond that, however. Regards, gabriel