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Technology Stocks : Dell Technologies Inc.
DELL 133.92-4.9%3:59 PM EST

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To: Chuzzlewit who wrote (149734)12/23/1999 7:46:00 AM
From: hdl  Read Replies (3) of 176387
 
Numbers tell why Dell is a short. When Dell was $43 according to Stephen Leeb's "Personal Finance" it was a sell because its PE was 70.5, its 5 year annual EPS growth rate was 36.2, its market cap was $110 billion, its 5 year annual price gain was 125%. The price had gone up at a rate almost 4 times that of its earnings. A company can't continue to increase its stock price in excess of its earnings gains especially when in the future earnings growth won't accelerate, interest rates and commodity prices won't be falling and valuations for the stock market won't be rising. The case against Dell of course is much stronger with it trading over 50. Refutations are very welcome.
The market will crash when margin rates are increased. They will be increased to burst this incredible bubble.
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