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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (74789)	1/6/2024 1:04:11 PM
From: E_K_S	Read Replies (1) \| Respond to of 78476

Re: Dell Technologies Inc(DELL) 13.33x PE Market cap $54 Billion 1.9% dividend I can't imagine why anyone would want to invest in boring mature Dell, regardless of the valuation Dell's revenue growth has been modest over the past 5 and 10 years: 5 year Annual Revenue Growth 5.3%: This reflects a period of moderate but consistent growth, with some notable fluctuations. Notably, there was a dip in 2020 due to the pandemic, followed by a strong rebound in 2022 10 Year annual Revenue Growth 2.0%: This indicates a longer-term trend of slower growth for Dell. The company has undergone significant acquisitions and mergers during this period, which might have affected the growth rate. In January 1, 2020 Dell's PE was 12.47x w/ a forward PE of 10.46x For January 31, 2023 Dell's PE was 14.75x and forward PE 15.6x ----------------------------------------------------------------- Now the incredible statistic is the stock stock price during that same 5 year period ! Therefore, Dell's CAGR for its stock price from January 1, 2020, to December 31, 2023, is approximately 24.88%, reflecting a healthy and consistent growth over the past five years. Will DELL's stock price perform the next 5 years with a 24.8% CAGR? To me, this is an excellent return based on the low PE. Is the market inefficient in the way it prices Dell? My take away, is your downside risk may/could be much less if you buy at a low PE I surly want a company that books positive EPS even w/ 5.3% Revenue growth. Mr. Market appears to have price the stock at the high end. That's +275% in 5 years ($20 to $75). Nothing wrong w/ that vs buying a High Tech Growth stock w/ little to no earnings and/or AAPL at 30x PE.

To: Elroy who wrote (74789)	1/6/2024 4:15:04 PM
From: Harshu Vyas	Read Replies (2) \| Respond to of 78476

Elroy, with all due respect, have you looked properly at Dell? Dell sell tech hardware. That's very low growth. PCs and peripherals are mature. That's one component of a two component business. And you've chosen to focus on the low margin element of the business. But, even then, it's not as bad as you make out. Any sustainably profitable operation has my attention - even if margins aren't exciting. But you have to consider the higher margin and growing "ISG" component of the business - storage, networking and servers. That's where the future of Dell lies. And the future of that is not entirely for me to comment on. The thread doesn't like Dell. Fine. But, initially, the thread didn't like CCL either. Nor does the thread like WWW or CUTR. But, to an extent, that is my advantage. It's also possible I'm totally wrong about the future of Dell and I overestimate Michael Dell. I'll learn the lesson at that point but nothing said so far is enough to make me think I've totally lost it. Do you know the gross margins on PCs are about 5%, and probably less? Source? At a 5% GM, Dell wouldn't be a functionable business. Dell's product gross margin was 17%... low, but you're statement is off by a little. Best,