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Technology Stocks : Dell Technologies Inc.
DELL 133.78-0.1%Nov 14 9:30 AM EST

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To: Lucretius who wrote (102180)2/17/1999 6:35:00 PM
From: Chuzzlewit  Read Replies (1) of 176387
 
Lucretius, how much cash flow did a tulip bulb generate? How much cash flow does a troy ounce of gold generate? How much cash flow does a share of Dell stock generate?

The analogy doesn't work. Maybe the greater fool theory works, but gold still comes across worse than Dell shares in that analogy. Worse yet, valuation depends upon some pretty difficult assumptions. If you cited things like AMZN I would say you're right on. The company is in negative operating cash flow.

But the fact is that Dell produces goods at a profit, and that those goods are in high demand in a growing industry. And the goods are not used for trivial purposes, like adorning your fingers. They are used as necessary components for business operations (unless you think computer technology is a fad and we should go back to manual adding machines).

TTFN,
CTC
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