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

To: Mohan Marette who wrote (123166)	5/7/1999 2:01:00 PM
From: Frank E W	Respond to of 176387

excellent post Mohan

To: Mohan Marette who wrote (123166)	5/7/1999 3:26:00 PM
From: JRI	Read Replies (1) \| Respond to of 176387

Mohan- I am not sure that Dell could steal Gateway's share for less than the cost of purchase....I think Dell could gain share in OTHER segments, or from other PC players (even within that same segment) with that same investment... I think Gateway will be one of the survivals, and even stronger as a result of the PC wars to come... This doesn't mean that Gateway will necessarily have any chance on Dell's home turf, and, indeed, I do believe Dell has a better chance of taking share from Gateway (then vice-versa), but for Dell to do, it would be a difficult (mountainous) battle....not easy, and costly... Everything I've read points to Gateway doing a good job in their segment(s), and will be hard to displace....Again, I think Dell can growth around the edges and in a number of other segments.....I have trust that, going forward, MD & Company will know the best path to growth...but I agree with Chuzz that acquisitions are now being more seriously considered...

To: Mohan Marette who wrote (123166)	5/7/1999 4:00:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Hi Mohan, I think there are really two reasons to consider GTW a good strategic acquisition. First, GTW is a potential BTO bridge for Dell's competitors. That is, they could use the GTW brand as a way to avoid a channel rebellion. There is mounting evidence that such a rebellion is hurting Compaq. Purchasing GTW takes that option away from companies like CPQ and HWP. Second, Dell is not well-positioned to market to the first time buyer. Naive consumers need to touch and feel the product before buying. The country store concept allows for that approach. The name of the game is not increasing margins, it is increasing gross profits. So long as you can make investments that yield more than your cost of capital you are deploying capital properly. TTFN, CTC