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Technology Stocks : Dell Technologies Inc.
DELL 127.61+0.8%Dec 23 3:59 PM EST

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To: stock bull who wrote (49487)7/1/1998 4:35:00 PM
From: D.J.Smyth  Read Replies (1) of 176387
 
StockBull: <<If Dell were to have their growth rate cut in half, they would still be a very successful company. However, I doubt that the Street would view this event in a favorable light. Thus the stock's price would be adversely affected.>>

if Dell's growth rate were cut in half, in less than three years Dell's sales would double from the present level to over $26 billion, and using a sales to price ratio of decreasing proportion to sales, Dell's stock price would be about 70% ($160) greater than where it is now, using a ratio of 3 to 1 instead of the 5 to 1 it is afforded now. in the meantime, one could possibly expect the price to range between $220 and $130 which would still play for a good game. however, if you add the (a) increased server business, (b) increasing demand for PCs/computing gizmos worldwide (c) storage business, (3) HP reseller agreement and any other new revenue stream Dell invents between now and then, you should expect greater revenue than $26 billion in three years.

no analyst has figured into their Dell numbers business generated from the storage division or the HP reseller agreement as both agreements are new.
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