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

To: G.M. Flinn who wrote (118763)	4/19/1999 1:28:00 PM
From: Frank E W	Respond to of 176388

OT funny how we never hear anyone trashing GE on CNBC! just a thought. FRank

To: G.M. Flinn who wrote (118763)	4/19/1999 1:36:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176388

G.M. I haven't heard the report directly, but based on what people have posted on the thread it seems as if Niles is making a cardinal error. Value is an illusion. There is only one thing that drives stock prices in the long run: the perception of future earnings. I have posted endlessly on the issues concerning the difficulties in transitioning from an indirect model to a direct model. You simply can't do it without losing market share. That means that if CPQ took this necessary step it might very well see stagnant sales for a few quarters. If it doesn't take this step it will slowly lose market share for years and never regain its former growth or dominance. In either case we are looking at a scaled-down CPQ. Where is the value in that? I think there are a couple of problems with some analysts. One is that they use incorrect financial models for valuation. History is just that: what has gone on in the past. It seems to me that if my analysis of CPQ's future is correct then there is considerably greater intermediate-term uncertainty in their business prospects than Dell's. But what do I know? TTFN, CTC