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

To: Reginald Middleton who wrote (30473)	2/19/1998 4:18:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 176387

Well said Reginald, now have you put up the analysis for Dell on your website yet? Last time I visited I didn't see it,just 'wonderin''.

To: Reginald Middleton who wrote (30473)	2/19/1998 6:46:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Reginald, I'm curious as to how you calculated DELL's value. In theory, a DCF approach to valuation is very nice, but the uncertainties are vast, and the misapplication of the technique is a great pitfall. I'm not sure, but I believe your report has a number of flaws including the following: First, why are you discounting at the cost of capital rather than a risk-adjusted discount rate (and if you can justify the cost of capital how have you calculated it?); Second, the uncertainties in looking past the next year are huge, so how in the world can you come up with meaningful terminal values? Third, I don't believe you segregated the cash flow derived from non-operating sources (ie, interest and gains made on short-term investments). I don't believe it's possible to value a growth company using DCF techniques, but I'm always willing to be convinced. I look forward to your response in detail. Regards, Paul