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

To: Rafael Silva who wrote (113895)	4/1/1999 3:35:00 PM
From: Mohan Marette	Respond to of 176387

Ref:DELL/IBM- Rafael: Well it is getting 'curiouser & curiouser' by the minute.Good show thanks for the news.

To: Rafael Silva who wrote (113895)	4/2/1999 8:52:00 AM
From: Rafael Silva	Respond to of 176387

From Prudential Securities Equity Research: (Membership Required) Investment Recommendations: We expect PC stocks will continue to remain under pressure in the near term due to concerns regarding the longer term demand environment. We continue to maintain that PC unit demand estimates for the year remain intact and that the recent weakness in corporate PC demand was the result of a pause in Y2K spending as corporate customers complete I/T budgeting and seek to determine how and when to deploy 1999 budget dollars. While corporate PC demand is somewhat softer than expected, we believe consumer PC demand remains strong. Gateway's quarter appears to be tracking to expectations; as a result, we view the recent weakness in the shares as a buying opportunity. We continue to recommend purchase of Dell, Compaq, and Gateway shares. We expect that the HDD group will continue to remain weak as Q1 proves increasingly challenging and competitive pressures remain aggressive. We believe there are insufficient positive catalysts to drive a recovery in the shares near-term. We remain neutral on the group. We expect channel stocks will remain under pressure as a result of 1) the pricing environment intensifying in the first quarter (due to companies' efforts to increase market share) and 2) weaker-than-expected demand as a result of economic and Y2K factors. As well, indirect PC vendors' shift to a more direct model (resulting in reduced rebates and incentives) and recent weakness in the corporate segment has also affected both revenues and gross margins. In the near term, we expect continued revenue and margin pressures for the group and therefore limited positive catalysts exist to drive a recovery for channel shares. As a result, we remain neutral on the sector. Apple (AAPL, $33 1/4, rated Hold); Compaq (CPQ, $31 1/4, rated Strong Buy); Dell (DELL, $37 7/8, rated Strong Buy/SBI/Select); Gateway (GTW, $65 5/8, rated Strong Buy); Micron Electronics (MUEI, $11 5/16, rated Accumulate); Compucom (CMPC, $3 3/4, rated Accumulate); Inacom (ICO, $7 3/16, rated Hold); MicroAge (MICA, $5 1/2, not rated); Maxtor (MXTR, $7 1/4, rated Hold); Quantum (QNTM, $17 13/16, rated Hold); Seagate (SEG, $27 1/2, rated Hold); Western Digital (WDC, $8 9/16, Hold); CHS Electronics (HS, $3 5/16, not rated); International Business Machines (IBM, $172 3/8, not rated); EMC Corp. (EMC, $122 7/8, not rated); SCI Systems (SCI, 30 1/4, not rated)