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

To: Rio Jangada who wrote (30136)	2/18/1998 5:24:00 PM
From: Franco Battista	Read Replies (1) \| Respond to of 176387

They also spent less on R+D this quarter than last quarter. They spent 4 million$ less. Because of the revenue growth, they should have spent about 6 million$ more. This little trick inflated their earnings by 10 million$ or 3 cents a share. Their margins may be up on a year over year comparison but their margins are down compared to the last quarter, down to 22% from 22.5%. Are lower priced computers starting to eat away at their margins? By the way, when I saw the enormous upsurge in Dell, I went long and sold half my position recently for a 10g profit. I am seriously considering shorting again. Will wait and see how stock reacts to earnings report.

To: Rio Jangada who wrote (30136)	2/18/1998 6:48:00 PM
From: Chuzzlewit	Respond to of 176387

Okay Rio, let's do some math (all calculations done on a fully diluted basis): eps last quarter = $.69; eps this quarter = $.81. Sequential growth (1 quarter) = .81/.69 - 1 = 17.39% in one quarter. Annualized we have 1.1739^4-1= 89.91%!!! Now, year over year we have 2.56/1.32-1 = 93.94%. Yeah, I guess you're right, eps should have expanded by 18.01% to maintain the previous pace. <VBG> Most companies would give their eye teeth (not to mention assorted other body parts!) for those kinds of numbers. Regards, Paul