To: kemble s. matter who wrote (39809 ) 5/1/1998 2:27:00 AM From: Matthew G Buetow Read Replies (1) | Respond to of 176388
To all: I don't recall ever posting on this thread, but I have something interesting to say. Someone said that Dell will double by this summer and double again by Christmas and double next again by next spring. I was scratching my head pondering the ballooning market cap if this happened, but then I compared Dell to a certain company called Microsoft. Dell's market cap right now is about $50 billion. Microsoft's is about $224 billion. Looking at these figures, one would assume that Microsoft is much bigger than Dell and makes much more money. Think again. The next item blew me away. Dell's trailing twelve month revenue is $12.33 bil. Microsoft- $13.7 bil. That's right, Microsoft is about 4.5 times higher valued than Dell with only a just over 10% more revenue. Okay, okay, what about earnings. Dell earned $944 mil. again trailing twelve months, Microsoft- $3.9 bil. So Microsoft made more money than Dell, but won't Dell's Net Income catch Microsoft's, maybe if they keep doing what they're doing. I just thought it was interesting that their revenues were so close and Microsoft is the second biggest company in the world based on Market Cap. This just proves that there's plenty of room for Dell to go higher, higher, and higher. I must admit that I love Dell. I traded it last summer, but I should've just bought it and held. I'm very in love with this stock and I know that's a bad thing, but how can you not be. Every summer it's the same thing. It's in the hundreds and I tell people to buy it. Their response is that it's overvalued. The thing I have noticed about Dell is that is at the same price a year later only after it split! But every year they say it's overvalued. I think it quite possibly could be the best stock in the whole world and still has a huge upside. Happy Investing and Go Dell!!! The above is my opinion. The figures are from Zacks (Yahoo Profile)and are the trailing twelve months.