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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: edamo who wrote (135397)	7/2/1999 2:53:00 PM
From: Byron Xiao	Read Replies (2) \| Respond to of 176387

What's up with Mr. Dell bashing the server centric stocks such as SUNW, EMC in the Barron paper several weeks ago? You compare CSCO with DELL is comparing chickens and eggs. CSCO is an internet infrastructure play, DELL is a PC hardware play. It seems to me that the market is favoring the internet infra plays, like CSCO, SUNW, EMC, ORCL... They have good earnings unlike most of the pure internet plays. Michael Dell just don't get it, the game is not in the PC margins, the game is in the internet related growth area. That's why I think it's crucial for DELL to buy an ISP and start expand from there. Sure $18M/day sales on the internet is impressive, but when you are facing stiff price competition, you have to re-invent yourself. Dell is still a boxmaker to wall street investors, SUNW on the other hand is a boxmaker with great technology and knows how to apply it. I don't get why Dell is bashing SUNW for. Java is becoming more and more popular in the software development community and that's from SUNW. Dell don't have a technology innovation like that. I think SUNW is a terrific technology company and doesn't deserve the bashing it gets from Michael. My advice to Michael is finish up your degree in UT so that you have enough knowledge in Java to comment on its technical merits. Don't make an ass out of yourself.

To: edamo who wrote (135397)	7/3/1999 2:28:00 PM
From: Chuzzlewit	Respond to of 176387

Ed, you opined: perhaps the market has decided dell ahead of itself insofar as share price....40% growth of the underlying company great...but with a high valued pe....should the market make a further adjustment to dell to bring more in line with the sector???? will the stock grow 40% per year or will the pe shrink to 40???? that is what must be decided by the market...today it is more the latter... I think that the old rule of thumb -- the P/E should equal the growth-- is useless because it fails to take into account prevailing interest rates and risk factors. Look at the P/E of the S&P 500 and compare it to its expected long-term growth. By this simple metric, if Dell is overvalued then the S&P is out of sight (only around 10% growth in eps). At some point Dell will experience growth in its existing business which is no higher than the industry as a whole, which means that perhaps in five years Dell's current business will grow at around 10 - 15% per annum. And that is the what I think that worry is the major drag on Dell's stock price. That's why it is imperative for the company to generate new businesses which utilize Dell's current strengths: virtual integration and superb inventory management. TTFN, CTC