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Technology Stocks : Dell Technologies Inc.
DELL 122.55+4.4%3:59 PM EST
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To: Meathead who wrote (22874)11/24/1997 5:13:00 PM
From: Franco Battista  Read Replies (1) of 176387
 
Again Meathead, the stock price is telling us that something has changed. It is all perception and the perception for Dell has changed over the past several months. The same thing happened to Intel this spring, after huge stock price growth (very similar to what has more recently happened to Dell), Intel has been slidding. In both cases there are fears of competition deteriorating their future. I took a quick look at the Dell 3rd quarter report and although they try to paint a rosy picture I am disappointed by their margin growth. I was expected a lot more there. With the lower component prices, especially disc drives they should have done better with margins. This might mean that they are meeting increased competition on pricing. The next quarter may reveal more on this issue. Also as they gain market share it will be more and more difficult to outperform the general pc market. I think investors at this point will take a wait and see attitude with Dell. There will not be any great share price appreciation until we either see some real blow-out earnings announcement or a p+e of about 20 for this box maker. That means Dell will hover around these levels for several quarters (trading range of between 60 and 90 IMO, lower if the general market tanks).
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