Dell has higher p/e than Intel! Sell! How can Dell possibly have a better future than Intel, when Intel is at the vanguard of technological developments, and Dell is making a commodity product?
<Dell has a 6 week backlog of orders!> Does this mean that Dell has many orders or that they are short on components, like the Pentium Pro. Shortages reduce sales, and margins, because Dell has to pay more for the scarce components.
<The hyperbolic Dell will keep quadrupling every 12
months. > It quadrupled partly because it sank to a low p/e of 7. If Dell doesn't go down, there is no way that it will quadruple in the next year.
<DBC news at 13:08
[DELL] SOUNDVIEW SEES DELL '97 EPS $5.15, '98
EPS $6.56. > My! It's already selling at 17 p/e for next year! How much more can it go up?
<I invested all of my life savings in Dell today at 110. I
will be a millionaire in 3 months! > I hope that you are young, so that you'll be able to recover from your terrible loss!
<Paul, as always he was a calming voice pointing out
that his old friend Al rattled the world with just four
words.> The fear that Greenspan's words caused in the market only indicated how jittery the market is. The market wouldn't have overreacted if the market was fairly priced. Indeed, Greenspan would not have made the remark if prices were based on value rather than greed and euphoria.
<Hey Pat, I remember reading Kenneth's estimate of
115-120 by the end of this week and I just thought,
"Man, this Kenneth needs to come back down to earth a
little bit", but looked what happened. Dell is up 11 & 7/8
for the week. WOW!!!> This rise in price is based on euphoria and speculation, not fundamentals and common sense!
<Do you see another 10% rise this week? I think that is
a conservative estimate--that would put it at 126 (63) by
Dec. 13. Still looks cheap at that price!> Hmmm. That would not only give Dell a higher p/e than Intel, as it has now, but it will be a higher absolute price, too! |
