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Technology Stocks : Dell Technologies Inc.

DELL 122.70

+0.2%

Nov 18 3:59 PM EST

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To: Dennis who wrote (58435)	8/16/1998 2:07:00 PM
From: Craig Lieberman	Read Replies (1) of 176387

Dennis, Look to Michael Dell for your answer. Didn't he say that DELL will be a $60 Billion company in 2001. It is now a $13 Billion company. So even with a shorter time horizon than now, consider 60/13 to be your ratio for the stock price or about 4.6. Assume that the stock is trading at 30% growth per year so a PE of 30 is what it deserves going forward. current earnings of around $2 this year x 4.6 gives earnings of $9.20 x 30 = $276 share price some time in 2001. Hows that for 3 years of investing. BTW if they do continue to grow at 30% for the two years after that, the earnings would be around $15.50/share in 5 years. which would conservatively (lets say 25% growth from there deserves a PE of 25). would lead to a share price of 25 x $15.50 = $388/share. Hope it helps explain why I am long in DELL since 1996 and will continue to remain long for some time. Craig

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