Paul, before we try to place a value on Dell's growth, first we should examine the prospects of that growth continuing at the present rate. I don't think it will, I expect it to flatten over the next year. Everyone expects current growth rates to continue forever, but it just doesn't work that way. The NASDAQ floor is littered with the remains of last year's growth stocks. RMDY, PRST, ZITL, RACE, HCOM, CPQ, Hayes, Corel, etc. Growth comes in spurts and the market is unkind when the spurt ends.
Yes, some seem to grow forever (like MSFT), but that is the exception, not the rule. Good luck and don't forget to take your profits. |
