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

To: SuperSonics who wrote (34693)	3/17/1998 3:23:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 176387

Watch it 'sire' for we don't want your ignorance showing now, do we?

To: SuperSonics who wrote (34693)	3/17/1998 4:30:00 PM
From: Chuzzlewit	Respond to of 176387

Companies have high P/E's for three reasons: 1. They are operating at or near break-even and investors expect rapid improvement to more normal conditions. Compaq is a good example. 2. The company might be liquidating, and its break-up value is very high. It might own considerable real estate that was purchased very cheaply years age. Railroads and timber companies could trade like this, although I don't follow those sectors and I don't know for sure. 3. Investors expect continuing high rates of growth in earnings. Dell is a good example. That's why people use forward-looking P/E and compare them with expected growth rates. Paul