> THE BULL MARKET REPORT WEEKLY for May 22, 1999
> Volume 18, #17w
> PART ONE
>
> $$$$$ DELL QUARTERLY SALES RISE 42 PERCENT
>
> Dell Computer, the #2 ranked personal computer
> maker, reported that
> first-quarter sales rose 42 percent, and
> profits rose by the same amount. Dell
> reported net income of $434 million, or 16
> cents per share, up from $305 million
> or 11 cents, a year ago. The earnings met
> expectations of analysts. Revenues
> for the April quarter totaled $5.54 billion, up
> from $3.92 billion a year ago.
> Sales generated on its Internet site reached
> $18 million per day, or about 30
> percent of overall sales.
>
> COMMENT: The company met expectations. Great.
> No further comment necessary.
> The company executes - it doesn't gloat about
> it - it just executes. And the
> last sentence above? WOW. This is up from $14
> million a day last Q. Multiply
> by 365 days and you get something really
> impressive: $6.6 billion a year on the
> Internet.
>
> Where's the stock going from here? Good
> question. The answer depends not so
> much on the growth of the firm as it appears
> they can keep up these 30-40%+
> quarter for some time to come. The key is the
> PE. At 16 cents of income for
> the Q or an annualized rate of 64 cents, this
> makes the PE 69 at today's closing
> price - and that is on forward earnings. Very
> high, but for the past five
> years, very deserved. Can Dell maintain this
> PE in the future? That's the
> question!
>
>
regards |
