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

To: lebo who wrote (128001)	5/24/1999 10:25:00 AM
From: rudedog	Read Replies (1) \| Respond to of 176387

lebo - re: not only does DELL qualify as an internet play, but as the most profitable internet company. This is pure e-commerce. Wall Street is blind. No - it is DELL investors who compare transfer of sales from telephone to internet as an "internet play" who are blind. The total impact of all of DELL's internet activity to their bottom line is maybe 5% at most. Good, typical clean execution but hardly the kind of profit potential to catch the eye of someone who otherwise might buy EBAY. Where is the business model which drives DELL stock based on this dynamic? Admittedly it is more efficient to sell via the net than by telephone, but it does not increase sales. Some of the innovative extranet work DELL has done probably do stimulate sales, but DELL's sales growth is pretty visible. It doesn't matter whether that is done by the net, phone, or mailing in a purchase order. The real "internet plays" are small float stocks whose revenue potential is limited only by the number of people who decide to jump on - DELL is not in that category. DELL will become more of an internet company when they either get a solid hook into some infrastructure piece or produce products in a new area driven by the internet - such as handheld connectivitiy, high-bandwidth infrastructure, become a major ISP, or some such.