To: David Rubin who wrote (22922 ) 11/24/1997 6:38:00 PM From: pwrmstr Read Replies (3) | Respond to
I want to interject a largely unheard of perspective to this thread - that of the Long-Term investor. First of all, I totally agree with your PE analysis of DELL relative to other growth stocks and your assessment of what it will take for Dell to regain its price momentum. Dell is much cheaper than many other growth stocks that are in much more mature industries with little potential for dramatic share or profit growth. However, the market discounts this growth excessively because of the overall negative market climate and because Dell is a relative new growth leader. I have owned Intel, Microsoft, and Cisco for approximately 5 years each and have made a ton of money, but it hasn't been easy not selling everytime some new uncertainty hits the newswires. Why? Because when companies grow as fast as Dell, the cynics continually harp on the fact that this growth can't continue, but the good companies continue to rise year after year on this wall of worry. It is really tempting to sell at times like this, but history has taught me repeatedly that selling is the wrong decision 90% of the time. I have nothing to say to you short-term day traders because we are in different professions. But for you long-term investors who want to own a winner, Dell is a company that has built the customer relationships, value proposition, operating capability, and corporate culture necessary to become a 21st century Blue Chip tech stock. I don't think many people on this thread know how difficult it is to implement a strategy like Dell's. But Gateway does, and Dell is eating their breakfast, lunch, and dinner. Who cares what happens tomorrow. This company right now is a screaming buy and will only continue to become more of one if the price drops further.
