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

To: rudedog who wrote (161588)	10/4/2000 6:21:29 PM
From: D.J.Smyth	Read Replies (3) \| Respond to of 176387

dell's forward looking PE (12 months) at $28 is lower than all its peers, yet Dell still has a higher growth rate. at $26 Dell's PE is discounted by 20% relative to GTW, yet Dell's projeted growth rate remains 30% higher than GTWs (analysts projected growth rate for GTW is 18%, 25% for Dell). but, what meaning, if any, will the market attach to this? the market seems more concerned with what did Michael say last week or this week? was he wearing enough cologne and smiling too much on CNBC? "liar, liar pants on fire"...was invented by wallstreet. $32 billion in revenue this year doesn't count because NEXT YEAR it will ONLY be $40 billion; and what of the year after that? growth is discounted when compared against feelings for the CEO. speak not of paradigms, or shifts. windows2K is meaningless in light of $200 million in missed sales (3%). Europe remains 1 1/2 years behind the US in computing power. they'll need to catch up sometime...but certainly not for the next forty years by WS visionaries it's NOT the $200 million in missed sales that counts, its not that Dell will make earnings for the Qtr; BUT, that $200 million represents a loss of $60 billion in market cap; it represents lost trust and lost trust translates into a decreasing share price. Institutions don't want to invest in 25% to 30% growth rates, they want trust. They want a stock they can depend on as to when to screw in happy times, and when to screw more in bad times. Forget about the fact that Michael Dell has been right 95 times out of the 100. It's the 5 the WallStreet traders can't live with. This is how WallStreet manages to suck the life out of small investors; redefine everything in order to fit their 5% worldview. what's another $65 billion in marketcap? (that much to go); we're only talking about 25% to 30% growth rate. Dell SHOULD have performed at a 31% growth rate because Michael Dell smiled and said they could. It's not about achieving a 27% growth rate IF Europe stays weak, or 30% growth if they turn to normal purchasing patterns, it's that we all expected a 30% to 31% growth rate. Europe will NEVER return to normal purchasing patterns. Europeans want to stay behind the rest of the world in computing power. They prefer 2% returns at the bank. They don't like 50% losses by buying Dell's stock, let alone computers. Even though all the research shows the young of Europe are the biggest single European PC growth engine, we can't believe this research. Even though research shows that the young are rapidly changing the face of Europe and happen to be the largest percent growth in population increase, this too is meaningless in light of 3% or $200 million. Welcome to Mr. Tucker's market (as he might say, "It's the market...live with it"). Thus, because Dell failed to give us that extra 4% in growth, this additional $200 million in sales, we will punish this bad boy. We will give Dell a price far below it's peers; it doesn't matter that Dell still runs faster. Because, in WallStreet's lexicon, they're NOT really running faster, they're only running faster at a slower pace. the street can do better than $25 5/8. come on.