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Technology Stocks : Dell Technologies Inc.
DELL 127.30+3.9%3:07 PM EST

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To: William C. Spaulding who wrote (58063)8/13/1998 1:06:00 PM
From: Chuzzlewit  Read Replies (1) of 176387
 
William, you wrote Show us how you are calculating your percentages.

Fair enough. The calculation of the geometric mean growth rate between 1993 and 1998 is the one fifth power of the ratio of earnings in 1998 to earnings in 1993 (since there are five years in between) minus 1. Thus, growth = (1.28/.17)^(1/5)-1 = 49.7%. Calculation of other growth rates is similarly performed.

So let me rephrase the point I was making. Based on the non-smooth nature of economic time series, it is logically and mathematically incorrect to infer anything from one or two points. Second, the tacit assumption that you made is really the same error that TA practitioners make: you can infer the future by simply extrapolating the past.

I did not say your facts were in error. I said that they did not provide the basis for your conclusion.

I hope this helps,

TTFN,
CTC
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