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

To: John Hauser who wrote (140453)	8/25/1999 8:58:00 AM
From: grogger	Respond to of 176387

Anyone see PRU reiterated buy on GTW with 124 price target? Looks like a good time for PC stocks (except of course CPQ) which can;t do anything right!

To: John Hauser who wrote (140453)	8/25/1999 10:26:00 AM
From: GVTucker	Respond to of 176387

John RE: Could anyone give me Dell's average multiple over the last 4 years? Currently, P/E @ 81.36 seems high on a historical basis. The average multiple over the past 4 years is 40. It has been steadily rising form the teens in '95 to around 100 in Feb '99, which coincided with the stock price peak. Is this a reason for concern? Well, valuation by itself is never a reason to sell or short a stock. DELL's PE rose above 40 for good around Feb of 98, and the stock price was a split adjusted teenager. To me, it would be a little more ominous if, with the stock price at a very high price in regards to multiple, the company's growth rate is indeed slowing. And that growth rate, in terms of both revenues and net income, is more the key, not the multiple. And there's an argument to be made on both sides of this issue.