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

To: Brian Hutcheson who wrote (19673)	10/29/1997 12:18:00 PM
From: hpeace	Read Replies (1) \| Respond to of 176387

brain, although the book value is there. I would bet that dell is going to make millioniares despite the book value. I've listed my 4 points of improvement dell needs to perform. they will correct 30%+ next yr. if they don't do them, BUT, DELL WILL CONTINUE TO MAKE PEOPLE GREAT MONEY AND THEY WILL MAKE CHANGES TO ADAPT AND COMPETE. I CAN'T THINK OF BUT A FEW COMPANIES I WOULD MOVE TO 100%(no diversification)...DELL IS ONE OF THEM AND CPQ IS THE OTHER.

To: Brian Hutcheson who wrote (19673)	10/29/1997 1:22:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Brian, book value is an illusion. IMO, the best way to look at a company is like a black box that generates cash. It doesn't matter how much it costs to make the black box (book value in my analogy). In any event, the safety net is not book value, but net liquidation value, which is much lower than book value for manufacturing companies like Dell. Some companies like railroads and timber companies have liquidation values that are probably higher than their respective stock prices because of the appreciation of land values and the resources contained on the land. Book value represents the historic costs- not the fair market value of all assets less liabilities. Regards, Paul

To: Brian Hutcheson who wrote (19673)	10/29/1997 1:31:00 PM
From: William C. Spaulding	Read Replies (3) \| Respond to of 176387

Certainly there is risk in buying Dell. After all, Dell could drop to 55, while still maintaining a p/e about equal to Compaq's. As long as it can maintain stellar growth and there are no significant negative market factors, Dell will probably maintain its lofty p/e. Should there ever be any reason to think that things will not be so good, then WATCH OUT! There is no question that, at some time, it will happen; I just don't know when. It does, however, limit upside potential. Dell will probably never have the p/e expansion that it had this past summer, and at some point, there will be a p/e contraction. It's simply not possible to continue growing so fast quarter after quarter indefinitely.