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Technology Stocks : Dell Technologies Inc.
DELL 122.55+4.4%Nov 21 3:59 PM EST

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To: kemble s. matter who wrote (157052)5/12/2000 1:19:00 AM
From: D. Swiss  Read Replies (1) of 176387
 
Kemble babes, if Dell net margins are 10% by year end, as Schneider indicated, they will earn about $1.66 / share next year. At 10.5%, they would earn $1.75 / share. This would make their PE, based on today's closing price and next year's earnings, 26. Not so terrible! With a 5 year growth rate of 30%, they are trading at a DISCOUNT to future earnings.

If you convert this to cash basis eps (assuming the same rate as this Q), they could earn $2.56 / share on a cash basis. This would make their PEG ratio .58 (ratio of stock price/next year's cash eps/ 30% five year growth rate).

I expect many upgrades tomorrow. Look out for Penguins!

:o)

Drew
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