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Technology Stocks : Dell Technologies Inc.
DELL 133.20+5.7%Nov 26 3:59 PM EST

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To: Patrick E.McDaniel who wrote (685)12/1/1996 6:52:00 PM
From: William C. Spaulding   of 176387
 
I don't know why people think stocks should sell for future earnings. No one can know what future earnings will be, especially since the Japanese are selling really nice systems right now at very competitive prices. If stocks' sell for next year's earning, what is it going to do next year? Stay the same? Stock prices should be based on trailing earnings, which can be known for sure. Then if earnings increase each quarter, then stock prices increase each quarter. Dell is already selling at a p/e of 15 for 1998 earnings!
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