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

To: Patrick E.McDaniel who wrote (156038)	4/6/2000 7:46:00 AM
From: GVTucker	Read Replies (4) \| Respond to of 176387

Question for the thread: I look at Dan Niles' report this morning and it states that demand is looking more 'normal' for the current quarter. This parallels what a lot on this thread believe (including me). Niles, as most everyone here knows, currently loves DELL. Most analysts are currently looking for a quarterly earnings of about 17½, compared with last year's 16½. I am guessing that these are low ball estimates, with the real number probably coming in at either 18½ or 19½. Let's say DELL comes in at the highest number there. That would represent around 19% earnings growth for what most people are saying is a normal quarter, and could even qualify as a better than normal quarter given some degree of 'snap back' from the Y2K thing. That means at current levels, you're paying in excess of 60x earnings (almost 80x trailing earnings) for 19% earnings growth. That seems highly excessive to me. There are a lot of smart people who disagree with me about DELL. That's fine, there's always smart people on both sides of any trade. What makes you so optimistic at current levels? Do you think that DELL will earn even more than 19½? If so, will you sell if earnings come in closer to 17½? I really want to know. Let's say