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

To: Jorge who wrote (34364)	3/15/1998 7:38:00 PM
From: John Trader	Read Replies (1) \| Respond to of 176387

George, Glad you liked that article also. I guess the reason it hit me the way it did is because I don't recall a CEO responding to all kinds of issues related to his company with so much confidence, intelligence, and style before. In your previous note you pointed out how wrong the bears have been when questioning the high PE of Dell in the past. In the long term, unless the PE is really high, it does not matter that much in comparison to the issue of how well the company is going to do. I think the general rule that the PE should not be much higher than the expected growth rate is reasonable. In this way of looking at things, doesn't Dell look favorable? Of course it is always better to get a real bargain on a stock. That may be hard to do with Dell since the word is out about the Dell success story. Another thought: The boomer generation is really going for expensive merchandise these days, stuff that they really don't need (examples: big fancy sport utility vehicles, big houses, Starbucks coffee, etc.). I guess this is because boomers are coming into the high-salary part of their careers. Doesn't this tend to make Dell look good as an investment since they sell high-performance computers and are recognized a top-quality brand name? Also, isn't Dell becoming the hip computer to own (it seems this way judging by all the excellent TV and magazine ads that have been out recently, and also the coverage about Dell Computer in the press)? Last thought: I think we should encourage good, intelligent, bear points of view on this thread. I think it keeps our bull arguments sharp and logical, and makes the thread more interesting. Also, some day they might be right on the mark about Dell. Hope that is a long time from now. Best, John