Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: D.J.Smyth who wrote (143297)	9/30/1999 11:16:00 AM
From: JRI	Read Replies (1) \| Respond to of 176387

Darrell- Rollins, Dell....a couple week ago....basically told us (again...as they have for close to a year) that they foresee Dell growing from 10-25% market share over the next few years......and that this growth will come at a p.a. rate of 40% (and sometimes plus levels) for sometime to come.. Now, I think those guys are (perhaps intentionally) being a little cute with the 40% figure...they could mean revenues, earnings, EPS, or units....but even if you look at units (the lowest denominator).......that puts Dell's growth (on average, in all likelihood) in the mid 30's in revenue, earnings...and probably closer to 40% EPS growth over the next few years...... Now, assuming with a stock price appreciating at 30% p.a over the next few years....Dell's PE/PEG's could nicely decline into the 50's..then 40's/40's, then 30's.....that is a decent (and I think reasonable) expectation of what Dell can do over the next few years... Just think about how much cash Dell will be sitting on in 4-5 years (growing at that rate)....10B, 12B? It will be a nice position to be in...and give Dell a lot of options to drive future growth... Of course, there are scenarios where Dell's stock price could appreciate faster...but, I would rather err on the side of, what I think is a (relatively) normal expectation... Show me where to sign up... (Dell's stock appreciating 30% a year for several years)....Again, if anyone knows a better stock than that (other than EMC! <G>)...I am all ears...