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

To: Chuzzlewit who wrote (35205)	3/22/1998 4:48:00 PM
From: John Trader	Respond to of 176387

Paul, Thanks very much for your inputs. Clearly the PE should be higher in a low-interest rate environment, and should also be higher if the expected growth rate has increased. I probably should have pointed this out in my post. Also, forward-looking PE's are more useful than backward-looking (assuming one has a reasonable estimate of future earnings). As to whether the above justifies the current PE is something I still am struggling with. As another way of looking at it, one could say that Dell is priced with the assumption of continued rapid earnings growth. In the past Dell has been beating earnings estimates. If this continues, then the stock should do very well. If recent events change this picture (e.g. severe price competition and lower demand for fast machines), even just short-term, there will probably be a pull-back in the stock. I am most concerned about the long-term performance of the stock. I am long-term bullish, but a bit concerned at the same time. I would be relieved if the bandwidth problems would start going away soon and new software gains acceptance that requires fast machines (voice recognition?). Best, John