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

To: David Tesorero who wrote (24813)	12/11/1997 3:17:00 PM
From: James H. Irwin	Respond to of 176387

I would refer you to Jim Kelley's post #24784. As well as the post immediately preceding this one. He outlines salient differences between the two companies. I prefer Dell's model, as obviously does Compaq. Profitability attracts competition. If you are comfortable with the overall market, I would stay long Dell and avoid Compaq (in a two stock marketplace). I am just questioning the valuation of a company trading at 39.3 times trailing when the estimates on the two out years are $2.60 and $3.45 (Jan 98/99) thats a year to year growth rate of 32.6%: for a box maker. A company which takes 11 minutes for its (technicians) to assemble their product. Competition is certainly coming--at least in accordance with its business model. I always would rather associate myself with the cost leader. Dell is clearly swell. But don't let everyone else's euphoric enthusiasm overtake your sensibilities. Think for yourself, try to understand who is saying what. Example, I can't tell you how many times I have seen Portfolio Manager interviews in Barron's when we had sell orders on my trading desk for the very same names they were "touting." Take care of the downside, the upside will take care of itself!! (My mantra to my friends who are new and experienced in investing.) bon chance. Jim