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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: gbh who wrote (55748)	4/13/1999 9:03:00 AM
From: Earlie	Read Replies (3) \| Respond to of 132070

Gary: Re direct model: To each his own. I prefer to deal with a local cloner. The price I pay is lower, I can spec the box to meet my own needs, I do not have to pay for delivery, I don't have to wait for delivery, and if anything goes wrong, I can cart the box back to him and pick it up two days later working properly. Incidentally, this is the model on which our society is built,....convenience of being able to purchase one's needs locally. I have never suggested that "no one will be left standing". Again, my concern relates to share price and company valuation. I do feel that everyone in an industry that works itself into a supply/demand glut is bound to be hurt. Why own stocks in companies such as Dell that are overpriced, and facing reduced profits due to brutal competition? I think you are ignoring reality if you think Dell's earnings will play catchup with growth. While the market worships growth, and dumb analysts have persuaded the public that growth in revenues is bound to translate into growth in profits, they do not necessarily follow. The problems for Dell, as I described in the last note, suggest that their margins will remain under pressure. The company also runs the risk of being badly hurt, as they are not yet competing at the bottom of the price spectrum, which is where the action is. Best, Earlie