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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: t2 who wrote (28262)	8/17/1999 3:41:00 PM
From: taxman	Respond to of 74651

"still struggling...whether to play Dell" 15:08 ET ****** Dell Computer (DELL) 41 3/8 -1/16: Company reports earnings after today's close... Normally that would be reason for excitement as DELL has long history of superior performance... But in light of increased competition, declining average selling prices (ASPs) and slowing top-line growth traders are more nervous than excited about today's report... If you're long the stock that's probably a good thing as reduced expectations increase the likelihood that the stock will stage a post-earnings rally... For that to happen, Briefing.com contends DELL will have to deliver a positive surprise... It won't have to be a big surprise, just better than expectations by a penny or two... Street looking for earnings of $0.17 on revenues of $6 bln... Latter figure could be more important than the former, as drop from 50% revenue growth of last year still unsettles some on the street... What they overlook is that in growing revenues by 40%+, Dell still laps the field... Nevertheless, revenue growth will be key in setting near-term direction... Briefing.com maintains that strength in Europe and Asia likely to be behind positive surprise... Given Dell's superior operating model, long-term growth in these regions is huge as well... How high could Dell run on a good number? Anybody's guess really, as a lot will depend on overall market conditions... But assuming a favorable market tone, a bullish report should propel stock to the upper-40s, low-50s... Despite reputation as a high flyer, DELL has seriously lagged behind the rest of the group this year as noted in the table below -- RW Stock Price/Change YTD % Gain Current FY Est. P/E PEG P/S (TTM) Dell (DELL) 41 3/8, -1/16 13.1% 56.7x 1.73 5.67x Gateway (GTW) 84 3/16, -7/16 64.4% 29.7x 1.27 1.85x Hewlett-Packard (HWP) 104 1/4, -6 52.6% 29.1x 1.99 2.38x IBM (IBM) 127 7/8 +1/2 38.7% 32.7x 2.68 2.75x Copyright ¸ 1998-1999 E*TRADE Securities, Inc. regards

To: t2 who wrote (28262)	8/17/1999 3:42:00 PM
From: Teflon	Read Replies (1) \| Respond to of 74651

t2k, IMHO, if DELL hits the REVENUE number that the Street is looking for, I think this is the Q DELL breaks out. Weird thing about this week is, though, we have options expiration on Friday. I think the heavy shorts out there will do their best to keep the Market down so they can cover and buy back any written calls. I guess my response on the Dell front is that there are probably better issues to short right now -- or go long. Dell is a tough one to call. Teflon

To: t2 who wrote (28262)	8/17/1999 3:54:00 PM
From: Teflon	Respond to of 74651

This is a beautiful Market! <OT> t2k, I am loading the truck with GMST stock. What a great story these guys have. Teflon