From briefing.com
12:55 ET ******
DELL COMPUTER CORP. (DELL) 56 1/2 +1 3/4. The world is still very rosy, according to Michael Dell. While every other PC maker has experienced
slower demand and increased price pressures that have eroded margins and earnings, the sun just seems to continually shine on DELL. Yesterday, Michael
Dell told reporters that business in Q3 was going well and that there was no change to its outlook from the comments he made after the release of its Q2 results.
Apparently, DELL is no being hurt by the problems hurting other PC marketers, particularly due to the turmoil in overseas markets, given the limited
international market share exposure it has there to begin with. But even with its limited base, the company has shown an ability to grow in these tumultuous
markets, at a time when other have failed to do so. DELL continues to outclass every other PC maker. But yet, even though the stock price has receded from its
earlier high of $64 11/16 (adjusted for stock split), the stock continues to traded at a 53 times projected FY99 EPS estimate and 40 times projected FY00
earnings. While so far investors have been willing to pay a hefty premium to enjoy the upward ride that this issue has provided them, if growth only moderates or
evens out due to the conditions abroad which are very likely to remain in place for some time, it is hard to believe that DELL can continue to defy the odds. Maybe
not today or tomorrow, but eventually, the torrid growth pace will slow due to the law of large numbers.
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