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

To: Andrew Fenic who wrote (26182)	12/23/1997 12:48:00 AM
From: Andrew Fenic	Read Replies (6) \| Respond to of 176388

PS: Another way to put Dell's overvaluation into perspective is to compare its market cap to Compaq. Compaq has 275M shares outstanding * $55 per share = $15 billion That on almost 20 billion in annual revenue! Dell has 385M shares outstanding * $81.5 per share = $27 billion That on only 7 billion in revenue. In a fair and equal world, I would say CPQ should have 3 times Dell's valuation because they sell comparable margin products to the same marketplace AND have 3x the overall revenue. Dell's stock has been grossly overinflated this year based on an exceptional growth rate but even IF they reach 20 billion in revenue they still, looking at CPQ, don't deserve their present valuation. This really looks to me like the IoMega syndrome where overoptimism and momentum investing has pushed an issue up beyond where it belongs. Hence I'm short at 81.5. Andy