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Technology Stocks : Dell Technologies Inc.
DELL 133.78-0.1%Nov 14 9:30 AM EST

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To: Rosemary who wrote (43252)5/19/1998 1:48:00 PM
From: Tradegod  Read Replies (3) of 176387
 
A thought to ponder concerning reaction to earnings...

Split adjusted, Dell earned .11 in the May 96 report, and .29 in the
May 97 report. Thats approx 170% increase. The stock jumped from 6
to 23 during that period approx 280% increase. OK. Now earnings are
supposed to be .42 (whisper of 45) If Dell hits the .45 number that's
an increase year to year of 55% Stock has increased even more 326%

See the table below

Date Earnings % Gain Stock Price % Gain
May 96 .11 6
May 97 .29 170 % 23 280%
May 98 est .42 55% 98 326%

Further on Feb 19 of this year Dell was at 110 and posted .89 The
stock gapped to 124 the next day (Pre split). Now Dell is within 10%
of that pre earnings price and is looking for half the earnings.
Rate of earnings growth is slowing substantially, but rate of Stock
Price growth has actually increased. Even if they beat it by 3 cents,
is this a buying opportunity? I think not.
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