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

To: kjhwang who wrote (137518)	7/23/1999 7:25:00 PM
From: JRI	Read Replies (3) \| Respond to of 176387

Cool- If you are referring to Dell's stock appreciating at 100-200% each year, almost all on this thread agree that is not going to happen....however, annual appreciation between 20-40% for the next few years, which is mighty good, is a distinct possibility. That makes owning Dell a very good investment. No where in your post do you mention earnings! Do not be fooled by internet hype, earnings do matter. Sometime (soon) internet companies, all internet companies, will have to show earnings, and earnings growth, and lots of it...or their stocks will get flattened.. Doubt, quite a bit, is already creeping in for many issues Amazon, in particular, is a bit worrisome, IMO. They will survive as a business..probably not even selling books...but, IMO, the jury is really still out...they have to show they can make money.. If it would make you happy, Dell could probably use $4 Billion in cash to buy existing internet businesses, load the balance sheet with debt, and selling their computers at below cost....I bet Dell could grow revs at 60, 70% or more. Would that make you happy? More importantly, would that increase shareholder value and increase the stock price? Somehow, I think MD, TM, KM know a little bit more growing shareholder value than you <no offense intended> How'd I do, Chuzz? <G>

To: kjhwang who wrote (137518)	7/24/1999 4:38:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Now the new stars are the internet companies with 100%+ revenue growth sustainable, until proven otherwise, a la messr. AMZN. Do you know what happens to companies like AMZN when sales level off? They go broke because their COGS is higher than their revenues. Do you know why they are solvent now? Because they collect revenues faster than they pay for their goods. That's why they must grow sales to remain solvent. And they rely on stock options to pay for their salaries and wages (so it doesn't appear on the income statement). And can you imagine what will happen when the stock price starts to seriously erode? They will reprice their options and accelerate dilution. I think that Amazon.com is the next Boston Chicken. TTFN, CTC