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Politics : Ask Michael Burke

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To: Earlie who wrote (57537)4/27/1999 7:20:00 AM
From: JRI  Read Replies (1) of 132070
 
Earlie: "I continue to value a company on earnings power first, assets second"..

Then why the continual comments about Dell (at 50 times book) being extremely overvalued...?

(Dell COULD increase its book value, and limit its ability to grow future earnings by loading the balance sheet with less-than-steller productive assets.........now that wouldnt make sense, would it?)

Also, how often do Fortune 500 companies get liquidated? Rarely. And even when they do....book value decreases significantly by then....so, book value "now" is probably not even a good gauge to figure out what future bankruptcy candidates will be worth (after all is said and done)...

Aren't earnings...and ROI...really the key?
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