SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Dell Technologies Inc.
DELL 119.17+4.1%3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Chuzzlewit who wrote (26214)12/23/1997 1:29:00 PM
From: Andrew Fenic  Read Replies (1) of 176388
 
Paul,

I understand fully that market capitalization are VERY dependent on future growth expectation and profit. Look at MSFT, for example. Obviously, if Dell's growth prospects went to 0 the stock would fall so far so fast it would make all of our heads spin. Their present valuation is entirely dependent on exceptionally strong growth through 1998 and probably 1999.

Dell, however, would need to grow at a 40% rate over the next 3 years to catch up in revenues to where CPQ is NOW. Yet Dell has a higher market capitalization than Compaq. IMHO that is crazy.

I think the reason for this is a combination of two factors. Compaq is very undervalued and Dell is at least somewhat overvalued. Hence I'm long CPQ and short DELL until the issues adjust, as they must, back toward a fairer valuation.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News