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

To: Meathead who wrote (22920)	11/24/1997 8:22:00 PM
From: gmccon	Read Replies (3) \| Respond to of 176387

<< My business is technology, you would not believe whats on the horizon. >> I believe and I am interested in investing in the companies dealing in the next cycle of hi-tech. Boxmakers are played out. Profit margins are shot. Fidelity used to own 10% of DELL's stock. Since August, they've reduced their position to just 4% (so far)(as reported on CNBC earlier). Regarding Fidelity, they also said the DD sector is finished (with respect to profit margins). Done. Interesting how they just found that out. They've all be floundering in the tank for a month now, and there is no hope for any of them with profit margins being what they are in the sub-1K world. It's amazing how the brokerage houses put 2 + 2 together a month after the fact and then report it to the investing world like it just happened. So, next cycle, please. People aren't going to pay $3,000.00 for their PC's any more. We've wised up. A 166Mhz MMX w/32 RAM and a good graphics card can do it all, literally. And end-users around the world have found that out. So, I would indeed believe that the next cycle of hi-tech is already on the horizon, Meathead. Any hints as to where we can put our money? Respectfully and sincerely, Greg

To: Meathead who wrote (22920)	11/25/1997 9:20:00 AM
From: Franco Battista	Read Replies (2) \| Respond to of 176387

Meathead, be careful. The bubble in stocks like Dell and the stock market in general is\was created by the abundance of 'foolish money' that became available when interest rates fell. This massive influx of liguidity into the markets has driven prices up to amazing levels. A stock like Dell in a true bear market would be trading at no more than 10 times past earnings. Perception can drive prices to ridiculous high levels (like now) or to ridiculous low levels, so low that you cannot even imagine. Ford at one point traded at 3 times earnings! This is how Peter Lynch made a killing for the Fidelity Magellan Fund and turned it into the biggest fund around. He bought all the Ford shares he could get a hold of. Ford was trading cheap because everyone thought that the competition from the Japanese automakers would drive US automakers bankrupt! Silly isn't it? This was about three decades ago, when the auto industry was far more important to the economy than computers are now. I never underestimate how high momentum will carry a stock, don't make the mistake of underestimating how low pessimism can drive it.