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

To: Boplicity who wrote (141031)	8/30/1999 10:44:00 PM
From: stockman_scott	Read Replies (2) \| Respond to of 176387

Greg: Here are some VERY INTERESTING passages from Tom Meredith's recent interview with The folks over at the Fool.com...FYI... <<Meredith: I actually think the sell-side analysts have perhaps one of the more difficult jobs on the face of the earth and I think that job has gotten immeasurably more difficult in recent years -- largely because sell-siders have increased their span of coverage, the number of companies they have to cover, and frankly there's a lot of transformation occurring as result of new technologies convergence, the Internet, broadband... So, I think they have an extremely difficult role, one. Two, they are, in my opinion, people you have to reckon with, and as part of that reckoning you'd better be trying to influence them to understand what it is you worry about, what you are trying to drive in way of priorities, and frankly provide them visibility to your industry sector numbers. Three, that is short of, at least in Dell's case, giving them precise guidance. We only try to give tonal guidance around the space and let them make the call. Sometimes they get it right on Dell, sometimes not. Your point, had you invested eight years ago and just held, you'd have been rewarded quite handsomely. Frankly, you could have come in three and a half years ago and been rewarded quite handsomely and I'm confident given where our P/E to growth ratio is relative to the S&P as a broad index and more broadly to what are considered the core technology investment holdings from Microsoft, Intel, Cisco, AOL and others -- I mean you pick. They're all trading at literally two or more times their growth rates and we're the only company, with exception of AOL, that has had revenues and bottom line growth above 40% in the first half of this year. You put that in a broader market context, imagine Dell has four and a half times a revenue run rate of AOL. TMF: It is amazing, and it is amazing to take that statistic and that thinking and put it in the context of somebody who'd say "near term neutral". Which I think leaves out very broadly the real direction of the overall corporation and something that frankly we have questions about whether individuals should pay much attention to those ratings on a quarterly basis and instead focus their attention on the research that has been done? Meredith: I think some of the fundamental research is what individual investors should look to and that old Peter Lynch saw. Sort of follow your instincts and just use your common sense and stick with what you know. In that context, what you know is that in Dell, you have a company that has consistently performed over a long period of time. Imagine HP talking about growth in the last three consecutive quarters. Let's talk about the last two and a half years where they had more misses than positives in terms of surprises. It's a great company, love HP, but on the other hand they're trading at over two times their growth rate. Dell's trading literally as of today at a little bit more than one times its growth rate. That, to me, is telling the momentum players you're on the wrong stock, and... it's telling the value players you're missing the proposition.>> Best Regards, Scott