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Technology Stocks : Dell Technologies Inc.

DELL 114.44

-3.4%

Jan 30 9:30 AM EST

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To: Dell-icious who wrote (47776)	6/16/1998 2:02:00 PM
From: Dell-icious	Read Replies (2) of 176388

Quant View: Good News, Bad News: Dell's Still Expensive thestreet.com Here are some excerpts: By Ted Murphy Special to TheStreet.com 6/16/98 12:10 PM ET Dell Computer's (DELL:Nasdaq) competition is prepared to pay the price, and that's bad news for Dell's earnings over the next few quarters. I decided to buy 10 computers last week -- my Web site eats computers like my kids eat candy -- and Compaq (CPQ:NYSE) matched the Dell bid. In a similar situation last year, Dell's flexible production model allowed it to structure a bid that was up to a third lower than Compaq, Hewlett-Packard (HWP:NYSE) or IBM (IBM:NYSE). Clearly, that's changed. So, I bought the Compaqs rather than the Dells. While the brands deliver comparable quality, the benefits of purchasing the hardware from the reseller next door, drop-shipped to the office in two days rather than seven, tilted the scales in Compaq's favor. Valuation Improved but Not Yet Attractive Valuation for Dell Computer has certainly improved over the last month, but the current multiple of 37 times forward earnings is still a long way from the historical norms. Dell's multiple ranged from eight to 20 times 12-month forward earnings during most of the previous 10 years. Ted Murphy (ted@pdgm.com) operates the MarketPlayer Web site. Previously he was a partner at Equinox Capital Management. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. c 1998 TheStreet.com, All Rights Reserved.

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