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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.11+0.9%Nov 21 3:59 PM EST

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To: Helios who wrote (15314)7/24/1998 3:30:00 PM
From: The Phoenix  Read Replies (2) of 77400
 
Helios,

Wal-Mart is trading at 1.1 times revenues and has a high PE for a retailer of just under 40. DELL is trading at nearly 5 times revenues and has a PE of 70.

At the same time DELL's profit margins are around 7% whereas Wal-Mart's are around 3.5%. And, growth rates for DELL have been higher. Nonetheless I think you have the right idea - we should be comparing DELL against the retailers. Now the question is, do the growth rates continue...if not is the PE too high?

Gary
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