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

To: Mohan Marette who wrote (115484)	4/9/1999 10:11:00 AM
From: Ian@SI	Read Replies (2) \| Respond to of 176387

SmithBarney Notes Part 1 --SUMMARY:--Dell Computer--PCs At a well attended analysts' meeting in New York yesterday, Dell management outlined several key initiatives for the coming year, as well as growth drivers. Key initiatives included 1) driving more sales through the Internet, and 2) expanding services offerings which will be treated as profit centers. Growth drivers cited by management included 1) penetration of new customer segments, 2) continued global expansion, and 3) product leadership. Management commented that analysts should not alter their current growth expectations based on the initiatives outlined at yesterday's meeting. Rather, the initiatives should be viewed as headroom to achieve current expectations. Maintain Neutral (3H) rating. --EARNINGS:----------------------------------------------------------------- FYE 1 Qtr 2 Qtr 3 Qtr 4 Qtr Year Actual 01/99 EPS $0.11A $0.13A $0.14A $0.16E $0.53E Previous 01/00 EPS $0.16E $0.17E $0.19E $0.20E $0.72E Current 01/00 EPS $0.16E $0.17E $0.19E $0.20E $0.72E Previous 01/01 EPS $N/A $N/A $N/A $N/A $0.89E Current 01/01 EPS $N/A $N/A $N/A $N/A $0.89E Previous 01/02 EPS $N/A $N/A $N/A $N/A $N/A Current 01/02 EPS $N/A $N/A $N/A $N/A $N/A Footnotes: EPS are fully diluted. --FUNDAMENTALS:------------------------------------------------------------- Current Rank........:3-H Price 04/08/99......:$45.00 Prior Rank..........: Target Price........:$30.00 P/E 01/00...........:62.5X 52 Wk Price Range...:54.31 - 16.73 P/E 01/01...........:50.6X Proj. 5yr EPS Grth..:25.0% Return on Equity 99.:89.00% BookValue...........:$2.64 LT Debt-to-Capital..:N/A% Dividend............:$N/A Revenue 2000........:$18389.00 mil Yield...............:N/A% Shares Outstanding..:2784.00 mil Convertible.........:No Mkt. Capitalization.:$125280.00 mil Hedge Clause(s).....:

To: Mohan Marette who wrote (115484)	4/9/1999 10:14:00 AM
From: Jean M. Gauthier	Read Replies (3) \| Respond to of 176387

Hi again,.... Their vaunted money mountain is NOT as high as people think.. They really have just about 1.5$ Trillion left, (out of 10 Trillion or so after liabilities) which is NOT much considering their future liabilities and bailouts left to do... Lots of articles on BusinessWeek & Forbes on Japan's (almost) insurmountable problems... The USA while a deficit nation is generating incredible wealth, while Japan a creditor nation is wasting it and away... Japan is a basket case for another 3-5 years, so do not count on it to save the worl economy when the USA will (if ever ...<g>) slow down Just MO Take care Jean

To: Mohan Marette who wrote (115484)	4/9/1999 10:14:00 AM
From: Ian@SI	Read Replies (1) \| Respond to of 176387

SmithBarney notes Part 2 --OPINION:------------------------------------------------------------------ Demand Drivers Michael Dell kicked off management's presentations with a discussion of the industry demand outlook and demand drivers. Dell outlined his belief that worldwide PC unit growth remains healthy, and should achieve compound annual growth of roughly 14% over the next three years. Dell argued that the majority of the world still significantly underspends on information technology relative to the U.S. Other demand drivers cited include Windows 2000/Office 2000, broadband communications, NT's move into the enterprise, the typical corporate replacement cycle and the Internet. Dell's only cautionary comment regarding current industry conditions was that availability of LCD displays is tight, which keeps screen prices high and impedes the trend toward desktop replacement by notebooks. Regarding Pentium III, Dell expects the conversion to the new architecture to be just as aggressive as the Pentium II transition. In the first 30 days after the launch, 50% of Dell's Dimension desktop sales were already Pentium III-based. With respect to Year 2000, Dell expressed a belief that many large corporate customers may not buy a significant amount of new PCs during the second half of the year, but added that the lock-down period cited by Dell's large corporate accounts seems to be shrinking as confidence rises surrounding their Year 2000 readiness. Dell also expressed a belief that small to mid-sized business and government purchases will significantly boost overall demand during the second half of this year. On the current quarter, Michael commented that Dell is "doing quite well," tracking to a sequential rise in revenue in line with prior years. Internet Initiatives The second portion of Dell's comments revolved around the company's Internet initiatives. Dell is currently selling approximately $14 million per day on the Internet (although some of these sales include interaction with a Dell sales representative). Current Internet volumes represent 25% of total sales, although in some segments 40% of the company's volume is already flowing through the Internet. For large accounts, Dell now has 15,000 Premier pages where customers can check pricing, place orders, check order status or acess technical support information. According to Dell, usage of Premier pages has "skyrocketed" in recent quarters and the pages have sparked a 75% reduction in order status calls and a 25% reduction in tech support calls. In addition to driving sales to the Internet, Dell hopes to drive more technical support requests there. In this vein, Dell has registered more than 100,000 customers for "Internet Chat Technical Support." "Ask Dudley," another on-line support service, receives some 35,000 questions per week. Dell did not specifically comment on the SG&A impact of these initiatives. *Dell plans to link Gigabuys, the company's new e-commerce site, to its 15,000 Premier Pages.