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. Swiss who wrote (157061)	5/12/2000 10:54:00 AM
From: kemble s. matter	Respond to of 176387

Drew, Hi!! RE: Kemble babes, if Dell net margins are 10% by year end, as Schneider indicated, they will earn about $1.66 / share next year. At 10.5%, they would earn $1.75 / share. This would make their PE, based on today's closing price and next year's earnings, 26. Not so terrible! With a 5 year growth rate of 30%, they are trading at a DISCOUNT to future earnings. If you convert this to cash basis eps (assuming the same rate as this Q), they could earn $2.56 / share on a cash basis. This would make their PEG ratio .58 (ratio of stock price/next year's cash eps/ 30% five year growth rate). I expect many upgrades tomorrow. Look out for Penguins! Drew babes ....I wish everyone going long on DELL or thinking of BUYING MORE would print this out....You deal with this sort of "math crap" :o) every day ...it's why you are where you are...I admire your position and treasure our friendship...I guess we'll always remain friends as long as you can continue to scare me... :o) Thanks Drew...That post said it all... Thanks so much once again for doing the math... As always..."Just cheatin' off the smart guys"... BUY DELL Best, Kemble