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: Jill who wrote (116576)	4/12/1999 9:52:00 AM
From: Mohan Marette	Read Replies (1) \| Respond to of 176387

Jill:Thanks for that report. It seems anything this 5fer guy touches turns into a disaster,Digital,AltaVista,Tandem,www.crap.com,even dogpaq. The man hasn't created a single red cent in value either to the company or for the shareholders.Now he is trying to bring down the whole tech sector around the world. I wish somebody send him packing to Germany so he can screw up something over there instead of messing us up here. Well hello,is anybody home?<g>

To: Jill who wrote (116576)	4/12/1999 10:23:00 AM
From: bry57	Respond to of 176387

there is no way CPQ will be able to stand up to DELL in the market place today,, people are buying PCs like never before, CPQ is going the way of rambler,, they will not stay up with the times,, there will be those who combine there efforts and those who die alone,, things are changing and MR.DELL will be a very big player, he plays well with others, that's the key to what's ahead, DELL is the best buy you can make, long or short term, there is lots of money to be made,,unity in the future,, bry57

To: Jill who wrote (116576)	4/12/1999 11:22:00 AM
From: Chuzzlewit	Read Replies (3) \| Respond to of 176387

Jill, thanks for the sobering report. I think that all Dell investors should heed this part of the analysis: maybe corporations are just flat out cutting back on capital expenditures, including computers. Amidst a strong stock market and a strong economy, traders often prefer to ignore the fact that corporate profits in 1998 were terrible. In fact, as measured by as-reported S&P 500 profits, the GDP corporate profits data, and BusinessWeek's 900 company calculation, profits were down. For anyone that has worked at a Fortune 500 company, as your current author has, the ramifications of this are well know. Companies hold back. Even just not increasing the capital budget means slower growth for their suppliers. When oil company profits are weak, no one is surprised that the oil drillers and other suppliers have problems. Is it really all that surprising that commercial computer purchases are weak now, after a year of lower profits for major corporations? I think that these concerns are real short-term. I also believe that Y2K budget lockdowns will take a toll. The question is the long-term strategic implications for Dell. Frankly, I think that a slow market represents an opportunity for Dell, although it will seem to be anything but fun if the price of the stock gets hammered. The reason is that it will provide the catalyst for the weak players to initiate exit strategies. I expect HWP and IBM to make major moves to accomplish a strategic withdrawal from what has been, for them at least, a brutal market. This means that there will be incremental market share available for Dell, but the pricing pressure may be such that earnings will not grow commensurate with sales. But in a market share strategy that's OK, because what you are looking for is the potential when pricing eases. Here is the extent to the advice I would give to anybody: if I am looking at Dell for the long haul I would snap up shares at significant dips, but I would be prepared for a long wait to make significant money, because the market must be convinced that there really is a turnaround following consolidation. I have no idea how long that might take. TTFN, CTC