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: Chuzzlewit who wrote (118772)	4/19/1999 2:08:00 PM
From: edamo	Respond to of 176388

chuzz....re niles, direct , indirect... what all fail to consider is the magnitude of the change from built for inventory/unrelated reseller method to bto/direct sell method...the sales side is only the tip of the iceberg....it requires a shift in marketing,purchasing,vendor relations,inventory control, production style and scheduling....easier to sit and make the same box all day long,instead of each box a bit different...it can be done, but could take a year to fine tune...and if not executed perfectly...fatal...not familiar with any company who has made a successful total transition from distribution sales method to direct...not just tech...any sector...ed a.

To: Chuzzlewit who wrote (118772)	4/19/1999 2:30:00 PM
From: stockman_scott	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?>> Chuzz: I totally agree with you. I can't understand why ANY fund manager can justify holding onto CPQ. It doesn't matter whether they are a Growth Fund Manager or a Value Fund Manager. Niles and many of the other ANALysts are just speaking out of both sides of their mouths when they comment on days like today. I really don't think he has a great appreciation for the power of DELL's business model -- and its ability to THRIVE and generate SIGNIFICANT profits and ROIC in a hyper-competitive market. Then again what do I know <GG>!!... DELL will RISE again. Best Regards, Scott