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

To: Chuzzlewit who wrote (19687)	10/29/1997 1:28:00 PM
From: McNabb Brothers	Respond to of 176387

Paul, Agree with you 100%! Hank McNabb

To: Chuzzlewit who wrote (19687)	10/29/1997 6:36:00 PM
From: Brian Hutcheson	Respond to of 176387

Paul , what you say has some merit . Obviously as long as Dell continues to generate an earnings growth on a par with its past record then stock price stays high . I have been of the mind though that the PC mfrs are now in the same crunch that caught the memory makers and recently the MPU makers , namely when competition heats up the revenues and margins fall rapidly . Over the last few weeks this is the kind of news I have been reading in the press , not only is the sub $1000 PC market booming but also the high end prices are dropping rapidly . One reason is Compaq and IBM do not take kindly to a relative newcomer poaching their turf , another reason is that many of the other PC mfrs are using the same methods of marketing and production as Dell . As far as break up value is concerned that is normally used if the company is in receivership . Most investors that buy stock in money losing companies as turnaround situations look at the book value for a guide to the lower limit of stock movement coupled with the price/sales ratio as a guide to potential upward movement , regards , Brian PS to confirm my appraisal of the PC market , Barrons magazine has an interesting article this week on page 26 . It also mentions Dell and Compaq with similar thoughts to what I have discussed .