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

To: David E. Taylor who wrote (130253)	6/1/1999 10:09:00 PM
From: Ian@SI	Read Replies (1) \| Respond to of 176387

So I wonder which reading of Rollins's comment is correct?? Was it an ambiguous statement, or is it just ambiguous reporting?? Yes. Actually, last quarter was over $5.5B or almost a $23B run rate. With growth of the business at 40+ %, it will double in less than 2 years. So Rollins could have been giving a very conservative estimate as usual. Growing overall revenues by about $20-40B would also be a fairly conservative range given all the new initiatives and new markets that Dell has entered. And growing the eCommerce portion by $20B is equally ambiguous. Regardless of how you interpret it, Dell's growth will significantly exceed the sum total of the dreams for every dot.com company trading on the NASDAQ. Ian.

To: David E. Taylor who wrote (130253)	6/1/1999 10:29:00 PM
From: Meathead	Respond to of 176387

RE: $20B to $40B When I first read that my initial reaction was revenue would grow from $20B today to $40B in a few years. I think that will happen anyway... Further analysis of that statement reveals it's somewhat ambiguous. Based on the words he used, I believe he meant BY, not TO those amounts. The other mushy statement is "next couple of years"... that could be 2, 3 or 4. Taking the middle numbers, lets assume eCommerce would generate 30B over a period of 3 years. Dell's revenue should increase from 25B in CY1999 to 42B in CY2001 (3 years). Over that 3 year period they will generate a total of about 100B in revenues. So it's feasible to believe that Mr. Rollins was indeed talking strictly about eCommerce. In this scenario, 30B would be about 30% of revenues. It's also possible that they would have had 3yr revenue of 100B without eCommerce so the 30B would be in addition to bringing the amount to 130B. In that case eCommerce would represent ~23% However you interpret it, He's talking HUGE numbers. MEATHEAD