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

To: rudedog who wrote (121989)	5/3/1999 11:27:00 PM
From: stockman_scott	Read Replies (1) \| Respond to of 176387

<<To say that investors should switch from CPQ to DELL at this point is to claim that DELL will more than double in the next year.>> Rudedog: Thanks for your opinions. I really believe that DELL will more than double in the next year. Most of the BIG money still misunderstands them. IMO, DELL will surprise a lot of folks with the success of their e-commerce efforts. They will also become a storage player sooner than many realize -- the market is too lucrative to ignore. DELL is a MASTER at using the virtual integration model and will use it successfully in many new markets. We could easily see DELL trade between $80 and $100 in the next year. They are generating the growth to support this. I would be shocked to see CPQ back up in the 40s anytime soon. Changing CPQ's direction is like trying to turn a supertanker around -- it isn't easy and it will take time. DELL is a moving target and will find a way to move into the higher end of the server and storage markets. TM just talked about this on the ML call. Listen to DELL during the upcoming CC and at the annual meeting. There is A LOT going on behind the scenes. I appreciate your opinions on this thread. Yet, I remain a DELLhead and feel quite confident that DELL will appreciate over 100% in the next next year. Best Regards, Scott

To: rudedog who wrote (121989)	5/4/1999 10:38:00 AM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Rudy, I believe I do understand what CPQ attempted. In essence, they were trying to move into the high end turf of companies like IBM with a combination of hardware and services. And they attempted to buy their way in with acquisitions like DEC and Tandem. But they were also interested in expanding into the low end (sub 1K machines), while at the same time holding on to the retail market. In other words, they were attempting to be all things to all people. True, the high end is not channel dependent. But hardware like corporate desktops, sales to VARs and retail are. And those are the precisely areas that provide the major sources of cash. Right now DEC exerts a net cash drain. So to fail to rework that portion of the business which does rely on channels prior to initiating a buying spree was the first mistake. Toss in a lot of arrogance (note how poorly Compaq rates on retail customer service polls) and you have a prescription for disaster. There were other mistakes as well -- like entering into the sub 1K market without recognizing the potential for cannibalization of existing product. But I want to focus on the biggies. The key for this company vis a vis competitors like Dell is to go direct, thereby eliminating the inventory overhang problem and establish a strongly positive cash flow footing allowing the rest of the company to grow in the high end. TTFN, CTC