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

To: Satellite Mike who wrote (30541)	2/20/1998 11:01:00 AM
From: jbn3	Read Replies (1) \| Respond to of 176387

Michael, No, I don't think you are being ridiculous. It is somewhat optimistic <gg> to expect any company to split once a year. And if one bases expectations solely upon what has happened thus far, you are correct, there is probably a disappointment coming somewhere down the line. However, many people are beginning to see that DELL is a special case, a)the first company to truly exploit the advantages of the internet to reach customers, and b) a company whose sales model is so smoothly efficient as to make all previous methods of mass sales look antiquated. So, as long as DELL's earnings growth exceeds its PE, I think that it may very well continue to split frequently, as DELL tries very hard to keep its stock price within the reach of the average and small investor. One of the reasons for the phenomenal price growth is that until VERY recently DELL was still considered 'just' a box-maker by the investing community. Only within the past 8 months or so has the street begun to realize that DELLs sales model is a lasting phenomenon, and that growth will very likely continue at high rates for the foreseeable future. Accordingly, the market has only begun to award DELL a PE consonant with its foreseeable growth. And I think you are correct, also, when you imply that if DELL does not meet expectations, its price will fall -- as it should. I merely have more confidence than you in DELL being able to meet expectations. Forgive me if my prior post was poorly stated. I certainly have no problem with you thinking that DELL's price will go down. It probably will from time to time. Is it not reasonable to ask that you also provide some sort of logical argument for your contention? (I know that some of us DELL bulls are prone to make the same error. <Vbg>) DELLish, 3.