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Politics : Ask Michael Burke
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To: Peter Singleton who wrote (47712)2/17/1999 10:12:00 PM
From: Knighty Tin  Read Replies (2) of 132070
 
Peter, The numbers are tremendous for a co. with a pe ratio of 25 times. Pretty lousy for a stock with a pe ratio of 79 times.

Here is the problem. Mid single digit sequential growth, numbers that many cos would die for, is a collapse from the over 10% (thanks to the receivables dump) sequential number reported in November and the 7.4% sequential number reported in this "disappointing revenues" quarter.

Then, if you take that decline in revenue growth and overlay it with the fact the co. is going to have to lower gross margins to achieve it, you are talking about a growth rate that may be halving. And that is just the co's always overly optimistic take on the horrible computer market in 1999. We also have to remember that Dell has admitted they got a large one-time only order in the current quarter, and revenues still aren't on a historical norm of growth.

So far, the stock price reflects nothing like the reality of the situation.

MB
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