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Technology Stocks : Dell Technologies Inc.
DELL 122.55+4.4%Nov 21 9:30 AM EST

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To: William Harvey who wrote (63913)9/6/1998 6:51:00 PM
From: Chuzzlewit  Read Replies (3) of 176387
 
I have no idea what you are talking about. If you would like to be specific it might help. But here are some points to consider:

1. The $5 was used to illustrate the irrelevance of book value. The value of the box is based on its ability to generate cash flows in the future, not on the historic value of the bits and pieces that were used to generate the box. This valuation techniques is exactly the same as used in fixed income securities. The example I used was for an annuity.

2. Dell is gaining market share, not losing market share. I have no idea where you got the idea that Dell is losing share.

3. Barriers to entry have nothing to do with book value. Book value represents only the historic value of the assets less liabilities. It in no way is reflective of the current barriers to entry, nor of the historic cost of entry. It is totally irrelevant.

TTFN,
CTC
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