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

To: edamo who wrote (147378)	11/13/1999 11:27:00 AM
From: LemurHouse	Respond to of 176387

<<<if earnings and exemplary growth grow stock price then why is dell 30% off its high? >>> Because the market is manic-depressive, that's why. It always overdoes it with volatile stocks, overreacting to the upside and to the downside. A quick read of this thread is enough to convince anyone of that! The market had a mania for Dell last winter and drove the price to unsustainable hights. Now things are cooled off and we are at a more reasonable valuation. Now there is much gnashing of teeth and rending of hair about Dell being "dead", "finished", etc. But the basic situation on the ground hasn't changed. THeir growth slope isn't as steep (did ANYONE expect it to stay that way?) but it is still outperforming 99% of all of the companies out there -- not just the companies in its industry, which it is totally dominating and even driving some of them from the field. The fundamentals are catching up with the valuation. The wheel will turn, the market will decide it loves Dell again, and the PE will expand. Damn near as certain as the tide going in and out. (Timing the tide is a little more tricky of course! <g> That's why I don't try to sell at a "top" like last winter -- I'm in for the long haul, until Dell's business fundamentals deteriorate, or management starts playing games to manipulate the stock price. Then I'll get out. It will happen eventually, but I don't think its happening now.) I don't think we disagree about market perceptions influencing the short-term price of a stock. I think our disagreement lies in whether management should be trying to control the market's short term perceptions. I think trying to do so would take management's attention off what really matters; and that it would be a futile effort in any case. The market is manic-depressive, but its not stupid, and tends to catch on to "guidance" which strays too far from the truth. On balance, Dell is doing a good job of getting the information out...they shouldn't do more than that. I think we have to agree to disagree on this one. Cheers.