Dell Technologies Inc. Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc.

DELL 117.44

-1.6%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Sonki who wrote (63839)	9/5/1998 3:35:00 PM
From: jim kelley	Read Replies (1) of 176387

Sonki, I do detailed projections for companies in which I invest. I try to get a good grasp of their competitive position and the strength and honesty of management. This provides a basis for the development of a perceived value of its future prospects. If I were daytrading I would want to have this kind of insight available. To simply try to trade the mood swings of the market without a good grasp of the fundamentals seems like a fools mission. INTC trades in the 18-28 PE range because that is the range of perceived earnings growth. If DELL traded at its earnings growth rate YOY we would get the following stock price: 72 X 4 X .5 = $144/share Remember Greenspan's speech did not mention past earning but rather future earning as being the basis of the value of the stock. This is the fallacy of using the trailing earnings as a basis for the determination of the appropriate P/E. Thus a better way to determine stock value is to forecast the earnings over the next year and then to apply the present value formula to determine the fair value of the stock. Jim Kelley

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next