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

To: jttmab who wrote (144708)	10/17/1999 11:01:00 AM
From: hdl	Read Replies (2) \| Respond to of 176387

PE is way high. Growth for such a big market cap company can't justify the PE. ASP of computers is inexorably falling. High PE can't be justified for company which must go into new areas. Young management may not continue outstanding performance. Interest rates and inflation may go up with negative effect on stock. Overall U.S. stock market is likely to drop a lot. There is no dividend to cushion the fall. There has been no profit if stock options were counted as deductible wages-expenses. A large portion of profits, if any, will go to those who got stock options for cheap. Computers, like TVs before, will become commodities and foreign companies will supercede U.S. companies as manufacturers as they have in other electronics. Competitors will finally be able to compete with Dell. Dell doesn't have assets, patents, technology that prevents others from finally successfully competing. Dell's assets are negligible compared to its market cap. What goes up must come down. Every action has an equal and opposite reaction. Trees don't grow to the sky. Bubbles burst. Computers are so good and cheap that the law of diminishing returns sets in. People and companies don't need a state of the art computer from Dell or others for 95% of their computers. Dell's stock is very vulnerable. Numerous things are likely to occur which will devastate its stock.