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Technology Stocks : Dell Technologies Inc.

DELL 146.68

-1.7%

Nov 7 9:30 AM EST

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To: Jean M. Gauthier who wrote (159295)	8/9/2000 12:34:28 PM
From: jim kelley	Read Replies (3) of 176387

You need to check your fundamentals before going out on a limb you like just did. SUNW's earnings are less than DELL's and its reverse PE is 109. Moreover, DELL's rate of growth is still higher than SUNW's and DELL has pushed SUNW out of the pole position in the workstation market. Next, DELL will push SUNW out of the low and mid range server market. Eventually, DELL will push SUNW in the high end server market with Itanium enterprise servers. SUNW will not have the economies of scale to compete with DELL on a price performance basis. CSCO grows through successful absorption of its acquisitions while DELL grows through its own efforts. Again CSCO PE is double that of DELL. Nevertheless, DELL does not compete against CSCO as it does against SUNW. By the way, SUNW's strength is not R&D as you seem to think but its marketing. SUNW bought it high end server from SGI and simply did a far better job marketing than SGI. The argument you are making for PE compression applies even more strongly to CSCO and SUNW than it does to DELL. So while these companies all exhibit earning growth rates in the same ball park, DELL is clearly the better value from a PE standpoint. :)

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