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

To: giddy guru who wrote (20300)	11/1/1997 10:45:00 PM
From: Markus	Respond to of 176387

To: giddy guru Yeah because the networking sector really showed a slow down in their earning growth. That is why CSCO is at its yearly low at that time. However for the boxmakers the situation is a bit different. There is no doubt that in the future earning growth might decrease, but right now things are as rossy as anyone can remember. CPQ and DELL CEO have made repeated comments on how well business are for them right now and in the near future. Let us look it this way. Right now it is very difficult to operate a business without a computer. Ask any college student, can they finish their term paper without a computer? And not counting the average persons who want to get on the internet. Unless they all bought Web TV, all of those people need a computer. Good Luck Bye.

To: giddy guru who wrote (20300)	11/2/1997 1:35:00 PM
From: dougjn	Respond to of 176387

The decline in networkers from Feb through April was based on the slowly increasing realization during that period that despite their previously unequaled rates of growth, and despite a general belief that the sector could sustain lt (5yr) revenue growth rates of 30-50%, that calendar 97 would see a relative significant slowing of growth. The recover occured after PEs had been chopped way back. Csco fell from 75 to mid 40s or about 40%, despite bedrock belief that it had at least a near term lock on leadership in its industry, based on proprietary software and standards, and ability to provided end to end solutions unmatched in its industry. Dell has declined a bit more than 20% from its peak. It is currently trading at a multiple of 25x twelve month forward earnings. Csco is selling at 29x twelve month forward consensus. If you believe that there is little chance that 12 month forward dell earnings will be revised downward, and little chance that Dell's expected 5 year forward growth rate will fall below 35% or so, then Dell is a buy here. I'm out for now. Regards, Doug