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Technology Stocks : Dell Technologies Inc.
DELL 121.59+0.8%12:01 PM EST

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To: Paul Chiu who wrote (175212)10/11/2005 9:42:33 PM
From: Meathead  Read Replies (1) of 176387
 
In the current environment, earnings disappointments are all but guaranteed. Rising energy costs aren't going to help anyone's balance sheet except for those who produce it.

After 5 years of Dell clawing it's way back to $40, all it took was a hiccup to yank the rug out.

IMO, by the time all of these new economic realities work their way through the system, the law of large numbers will have fully exerted their forces on Dell's stock price and the PE multiple contraction will have run it's course settling out to that of the low-growth tech giants.

Heck, it's pretty much there right now. I'd say the stock is range bound between $30 and $40 from now till about as far out as anyone would care to predict... provided Dell continues to do well and stay on their current growth trajectory.

But hey, we all had fun in the 90's didn't we?

MEATHEAD
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