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

To: jim kelley who wrote (20684)	11/5/1997 2:29:00 AM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Jim, thanks for an excellent analysis of Dell. I agree with all you've said, but we should all bear (no pun intended!) one thing in mind. DELL is a momentum stock, and one slip, or a rumor of a slip can send the price plummeting. The underlying problem as I see it is that we simply don't have a good way to value growth companies. I've posted at length, so I won't rehash my arguments here, that PEG and YPEG valuations don't make financial sense. It's certainly true that companies with greater growth should be valued at a premium over those with lesser growth. But we're still faced with two problems. First, how much of a premium, and second, we've begged the question of how to value the company with lower growth. I don't mean to sound like a bear (especially since I'm long DELL), but we need to couple the issue of Dell the company to DELL the stock in some meaningful way. Practitioners of Modern Portfolio Theory contend that a company is worth what the market says it's worth, and while I tend to lean towards that point of view, I really yearn for some sort of objective mathematical underpinning for growth stocks. Any thoughts? Regards, Paul

To: jim kelley who wrote (20684)	11/5/1997 5:41:00 PM
From: hpeace	Read Replies (1) \| Respond to of 176387

dell just pays allot more for their parts and that's why their margins are only 22+%... jit isn't really jit if the vendors stk the parts and add it to the cost...that's what is happening on all dell's vendors. they have some module vendors that are trying to convince them to do jit even through the vendor cycle too. before you start preaching here..I'm not ain't guessing. and besides. dell said this in press relase about 2 months ago and I posted it.. you'll just didn't understand what dell said.

To: jim kelley who wrote (20684)	11/5/1997 9:43:00 PM
From: Sonki	Read Replies (1) \| Respond to of 176387

Jim, i appriciate the time you took clarify current situation for dell. i have thought the same. how can a company as big as cpq quickly change their model? i own both cpq and dell before the split. I own lot more dell currenly then cpq. Jim, i have too much in to techs and have not diversified properly. other then a few drug stocks, i have mostly techs. I have recently seen lots of my profits diappear and i have seen many insiders selling in my high tech stocks so I took half my dell leaps which i paid $10 for @40 strike price (jan. 99) and I sold them jan 99 vdqar jan90 20.75 ...This means my initial money put into dell is home free and i m still riding on the other half. At the time of expiration some john doe will pay me $90 for my $40 dells and i will use that money for exercising. I will be buying rest of my dell @40 in 99 and i will hold for life. dell has been very good to me but i have watched my intel and amat profits go down and soon i will start making losses on intel if it keeps dropping like this. Hope intel comes back before warrant expires.