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Technology Stocks : Dell Technologies Inc.
DELL 115.30-1.6%12:12 PM EST

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To: Craig Lieberman who wrote (76993)11/9/1998 12:30:00 AM
From: Doug Hubert  Read Replies (3) of 176387
 

>>"A 20 or 25 percent (market share) is probably about as much as we can have as a company in the next five years, without going to radically different fields," he added. <<

Looks like we have a LONG way to go - better pack a lunch!!! Can this be correct?

Zacks 5 year industry growth rate = 21.5%.
Dell currently has 9% market share.

Given a basis of 100 for the entire industry, a 21.5% growth for 5 years equates to 264.77 basis points. 25% of this is 66.19 (which is where M.D. says Dell might be in 5 years). Given that Dell currently has 9% of the industry market, it starts with 9 basis points and has to get to 66.19 points in 5 years. This equates to 49.0% growth rate PER YEAR FOR 5 YEARS!!!! Even if Dell only gets to 20% market share in 5 years that equates to 42.5% growth PER YEAR FOR 5 YEARS!!

Is there something wrong with my math, or is the train just pulling out of the station??

GO DELL
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