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

To: jim kelley who wrote (19701)	10/29/1997 2:40:00 PM
From: William C. Spaulding	Read Replies (3) \| Respond to of 176387

My point was that Dell's growth rate is not sustainable, not that it doesn't justify its present p/e. And in regards to p/e, there is no law that requires the p/e to be directly proportional to the growth rate. That is just what many people believe, but that can easily change. And also, the real danger of high p/e stocks is that when the outlook does change--and at some point it has to--a high p/e stock will fall much farther than a low p/e stock. That's all I'm saying. I'm still bullish on Dell for this year at least. But I think that Dell's p/e expansion is over, and that the stock price will rise slower than it had in the past. I believe the past 2 months illustrates this.