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

To: Fangorn who wrote (35623)	3/26/1998 12:16:00 PM
From: Chuzzlewit	Respond to of 176388

Good morning Steven. It seems to me that the problem with the bears' arguments is not so much that they are illogical, as there is absolutely no evidence to back them up. I think most of them fall into this category. For example, James' argument that the Y2K problem will suck up the bulk of the cash that IT managers have leaving little left over to buy computers. The argument is sound, but it presupposes two things. First, that IT budgets are inflexible, and/or second the cost of the Y2k problem will have a material impact on IT budgets. The only thing missing is evidence to support the conclusion. Then, there are the totally illogical arguments. Take, for example, the argument that Dell is trading at an historically high p/e and is therefore due for a price correction. Implicit in the argument is the assumption that the p/e is a characteristic of a stock, and that historic p/e will pull the stock back to its proper valuation -- like a tether on a wayward child. But in point of fact, p/e reflects future earnings expectations and long-term interest rates. Arguments based on TA fit neatly into this category as well. Regards, Paul