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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: Retired@35 who wrote (43187)	5/20/1999 11:37:00 AM
From: JakeStraw	Respond to of 90042

>>Where is everyone? They must be out enjoying the nice weather!!

To: Retired@35 who wrote (43187)	5/20/1999 11:37:00 AM
From: Tim Luke	Read Replies (2) \| Respond to of 90042

cs looking strong

To: Retired@35 who wrote (43187)	5/20/1999 11:41:00 AM
From: London Brian	Read Replies (1) \| Respond to of 90042

DELL info: Thursday May 20 This article was written by the most respected columnist with the Financial Times ft.com DELL: Marginal setback It is too early to turn bearish on Dell Computer. Wall Street took fright yesterday over the direction of the personal computer maker's gross margins, but missed the larger point: Dell has just used its impressive cost advantages to fire up its growth rate once again and keep its market share growing. The moves needed to support the company's PC industry-leading profit margins are in place - although the benefits may not show through until late this year. The case for Dell rests on its ability to turn the internet from a useful adjunct into a medium that lies at the heart of its operations and processes. It has already proved more adept than others at selling over the web (30 per cent of sales in the latest quarter) and running a slicker inventory system. Rivals catching up with its build-to-order model may not find on-line sales and service so easy to master. To limit further damage to its gross margin, the company needs to move faster in using the internet to boost efficiency. Expenses as a proportion of sales will need to drop more quickly as price competition in consumer PCs bites. Other initiatives, including the move into more profitable servers, will take time to have a meaningful impact on the overall profit margin. In the short term, this does not augur well for the stock. But given the company's record and rival Compaq's disarray, it would not do at this stage to bet against Michael Dell.