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

To: rudedog who wrote (145815)	10/26/1999 11:19:00 AM
From: OLDTRADER	Respond to of 176387

RE:Rudedog-Thanks.wbm

To: rudedog who wrote (145815)	10/26/1999 11:42:00 AM
From: Michael G. Potter	Read Replies (2) \| Respond to of 176387

Revenue is nice, but what about cash flow and profits? Michael

To: rudedog who wrote (145815)	10/26/1999 12:00:00 PM
From: Craig Lieberman	Read Replies (2) \| Respond to of 176387

RE: DELL and MSFT have similar revenue - MSFT reported $19.7B last fiscal, DELL reported $18.2B Last quarter, MSFT reported $5.3B, DELL reported $6.1B But DELL is growing revenue faster than MSFT. Fez and rudedog, Not that I want to be a defender of MSFT, but they do have 3 times the earnings per share of DELL. And they can give guidance to analysts to RAISE the estimates and still blow them away. I am confused though... From ZACKS: Price/Earn(Jan 00) PEG Ratio(Jan 00) last 5 This Year Next Yr Next P/E PEG Years (Jan 00) (Jan 01) 5 yrs (Jan00)(Jan00) DELL 70.0 % 44.6% 35.2% 33.8% 54.1 1.21 Comp Micro 26.5 % 3.8% 26.3% 22.6% 37.9 9.97 S&P 500 10.3 % 11.3% 10.5% 7.5% 26.1 2.31 From this table, DELL seems to be significantly undervalued compared to both the S&P 500 and the other computer vendors for its PEG. Aren't we paying for growth rate here? Why would I invest in a stock that is growing at 4% when I can get one growing at 35-45% or nearly 10 times faster for a little more than twice the price? Seems like only DELL is fairly or even undervalued right now. Even MSFT with a trailing P/E of 61 (comparable to DELL) is almost 4 times more expensive from a PEG standpoint... (MSFT PEG of 4.50 according to ZACKS for FY ending Jun 00). This could be what LT has been saying all along. The market is way over priced. Just don't think that DELL fits that basket. Craig