Upstart Vs. Wall Street

DELL COMPUTER'S METEORIC RISE TO THE TOP ranks of the personal-computer industry has kept rivals wondering for some time how the manufacturer has managed to sustain its miraculous climb. Then a Wall Street analyst claimed he had the answer: the PC maker's ascent had less to do with miracles than with some sleight-of-hand accounting. In a blistering report to investors, David Korus of Kidder, Peabody charged that Dell accounted improperly for foreign- currency trades and suggested that currency speculation may have been used to inflate the company's profits. The report touched off a wave of nervous selling in Dell stock. It also touched a nerve at Dell. The company issued a scathing denial of Korus' allegations. "Management's intent was for hedging," said Dell about the trades, "not for speculative gain." The Austin, Texas, manufacturer has threatened to file lawsuits against Korus and his firm. In addition, it called for an investigation by the Securities and Exchange Commission.