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Technology Stocks : Dell Technologies Inc.

DELL 133.92

-4.9%

Nov 13 3:59 PM EST

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To: Mohan Marette who wrote (115234)	4/8/1999 3:39:00 PM
From: JRI	Read Replies (3) of 176387

Mohan- I listened to Kumar's VC call...Some points: Piper's targets: - 1st Q revenue: 5.5B (40% growth) - 1st Q EPS: .16 (consensus) - Sees "as near-term sustainable" 35% growth rate for Dell (did not specify, revenues or earnings or EPS).... - Has a price target of 55 (did not specify time-frame). How he got to the number: Fiscal '01 (year 2000) EPS $1.00 (which represents approx. 36% gain from his Fiscal '00 estimate)... Take $1.00 EPS in '01 x forward growth rate multiple of 55 (35% + a 50% premium)= 55 target price...he believes Dell will have a hard time exceeding 55 without signing a major agreement with someone (likely IBM) to benefit more from service revenue stream....sees service area as the area Dell must grow revenues/earnings.... He frequently mentioned Dell/IBM (potential) link-up, seeing it as vital for Dell to maintain super-growth rates...(He sees any services deal with IBM including a deal for Dell to make IBM boxes).. All in all, he was cautious, but not as negative (as I remember him being) on the last CC....Not bad... Finally, he does not believe the "nuclear winter" scenario for PC makers, (his words: "we do not expect demand to fall off the cliff in the 2nd half of year") and in fact, expects that PC stocks will rise in the fall (until end of Q3) due to visible, coming (pentup ?) demand increases coming in early '00 due to Microsoft 2000... Anyone else want to add anything?

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