Dell Technologies Inc. Message Board

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Technology Stocks : Dell Technologies Inc.

DELL 127.90

-4.4%

3:59 PM EST

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To: BGR who wrote (110943)	3/23/1999 1:59:00 PM
From: Michael Bakunin	Read Replies (1) of 176387

Bukun, Indeed, I expect the technology sector to mature before it reaches 50% of the economy. Technology has great potential, but it is only a tool. Early this century, mechanization and mass production wrought a revolution, but machine tools did not become 50% of the economy. Regarding putative future consolidation, you are right. The strongest companies stand the best chances of survival. If Dell's stock were priced for near-term survival and later prosperity, I might be long. But the price needs to be discounted for industry bloodshed. In re diversification, that an area in which I agree with current market sentiment: diversification is for investors, not companies. The market rightly discounts agglomerations of semi-related businesses. If Dell is fairly priced at current interest rates with an accurate equity premium, then lower rates would mean a higher stock price. Consider that such changes never occur in isolation. While rosy scenarios might compound the price increase, I can think of several futures in which both rates and equity prices fall. mb

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