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

To: Chuzzlewit who wrote (20685)	11/5/1997 2:46:00 AM
From: jim kelley	Respond to of 176387

Paul, YPEG and PEG are useful in comparing P/E of companies in the same business. For example, the P/E s of CPQ and DELL seem to be proportionate to their PEGs. They have maintained this relationship approximately for a while. This represents the markets determination of their value in the presence of the fear and disinformation that has been endemic for the last several weeks. Modern portfolio theory seems to beg the question of how valuation is determined when its says it is what the price of the stock actually is. We know that the price of a stock may bear no relation to the value of the company. Consider BRE-X. The extent that this relationship is distorted is a measure of how poorly the real story of the company's value is being communicated. I think a lot of the momentum players left this stock last week. Perhaps they will return. I agree that if DELL fails to execute as it has in the past the stock will take a beating. But so far I think the chances of that happening in the near future is very low. I am willing to take that particular risk. Regards, Jim kelley