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

To: Patrick R. who wrote (126980)	5/19/1999 4:25:00 PM
From: Dorine Essey	Read Replies (1) \| Respond to of 176387

Patrick, Don't worry. Everything will be ok DELL 40 after hours Dorine

To: Patrick R. who wrote (126980)	5/19/1999 8:10:00 PM
From: stock bull	Read Replies (3) \| Respond to of 176387

Patrick & All, good article on Dell's current events: Dell Computer Shares Fall as Sales Growth Disappoints Round Rock, Texas, May 19 (Bloomberg) -- Dell Computer Corp. shares fell 9.7 percent after the biggest direct-seller of personal computers reported its second straight quarter of slowing sales growth. Dell fell 4 1/4 to 39 13/16 in trading of 65.1 million shares, making it the most active U.S. stock. The shares have gained 9 percent this year, yet lag a record 55 reached Feb. 1. Today's drop slashed about $1.55 billion off the value of Chairman Michael Dell's holdings. The company said sales for the first quarter ended April 30 rose 41 percent, less than the year-ago quarter's increase of 51 percent and slower than the 54 percent growth Dell averaged in the previous eight quarters. Dell also cut prices to boost revenue, which trimmed the company's profit margins more than most analysts predicted. ''This was a much sharper decline that we had expected,'' Richard Gardner, an analyst at Salomon Smith Barney who has a ''neutral'' rating on Dell, wrote in a report. The company's gross margin, or the percentage of profit left after subtracting production costs, slipped to 21.5 percent from 22.3 percent because of lower prices for its computers. The average selling price for Dell's PCs and notebooks was $2,300 in the quarter, down slightly from the previous quarter and about 8 percent lower than the year-earlier quarter. Still, the decline was mitigated by lower component prices. Dell had warned investors that its gross margin would narrow as it cut prices in the first quarter. High Hopes Some analysts expected Round Rock, Texas-based Dell to roar back from last quarter's slowdown in sales growth with earnings as high as 18 cents and sales of $5.7 billion. Instead, Dell matched First Call Corp. estimates, earning $434 million, or 16 cents a share, on sales of $5.54 billion. (Prices) continue to fall, and that puts more pressure on Dell,'' said Cody Acree, an analyst with Southwest Securities Inc. in Dallas who rates the stock ''accumulate.'' Shares of other PC makers also fell today. Gateway 2000 Inc., another company that sells directly to customers, declined 1 3/4 to 65 1/16. International Business Machines Corp. slid 2 5/8 to 235 7/8, while Hewlett-Packard Co. fell 2 3/16 to 93 13/16 and Compaq Computer Corp. dropped 1/4 to 26. Better-than-expected quarterly earnings from IBM and H-P, the world's two biggest computer makers, fueled optimism that Dell would beat estimates, too. Both companies benefited from a turnaround in their PC businesses. ''Dell is judged by a high standard,'' said Steven Milunovich, a Merrill Lynch & Co. analyst in New York, who rates the stock ''accumulate.'' 'Industry Issue' Dell sells PCs directly to consumers over the phone and on the Internet. That system means that Dell doesn't have to share profits with distributors. It also gives Dell more control over inventory, which helps it cut costs. In a report today, Milunovich said he's concerned about slowing growth in the PC industry as a whole. ''Our concern about Dell remains an industry issue rather than a Dell-specific issue,'' Milunovich wrote. ''Revenue growth in the PC industry is slowing'' and ''pricing pressure may catch up with even Dell.'' Still, results for Dell were respectable compared with growth in the computer industry and for its rivals. Houston-based Compaq, the No. 1 PC maker, had first-quarter earnings that were just half of analysts' forecasts. Dell expects sales to increase at a steady pace for the rest of the year, Chief Financial Officer Tom Meredith said in an interview. ''Our momentum and outlook across the business seems to be in pretty good order,'' he said. ''We see no reason for any disruptions to the trends.'' Dell disappointed investors in the fourth quarter, when sales increased 38 percent after two years when growth exceeded 50 percent. Some were looking for sales to rise as much as 45 percent in the first quarter, outpacing overall industry growth of about 15 percent. May/19/1999 16:16 Hope this helps to answer your question. If not, let me know. Stock Bull