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

To: Boplicity who wrote (39972)	5/2/1998 1:06:00 AM
From: Lucretius	Read Replies (2) \| Respond to of 176387

BTW-- did you catch the raging bull that is pictured on the cover of Barrons. This, on top of the bull being on the cover of a mainstream rag this week, Newsweek. The end is near... beware.

To: Boplicity who wrote (39972)	5/2/1998 1:52:00 AM
From: Patrick E.McDaniel	Read Replies (2) \| Respond to of 176387

Greg, a thought on the Dell P/E., another on Dell/Compaq. Trailing earnings are currently running at $1.32/share resulting in Dell's P/E at 63.5. Very high for Dell by historical measures. However, Q1-last year was .27. In several weeks it will be replaced by earnings from .45-.55/share. For talking purposes I'll say Dell will come in around Q1-this year .50/share. This results in Dell's trailing earnings to be $1.55/share or a P/E of 54. So what we are currently seeing is the market positioning to reflect the upcoming earnings and it's effect on trailing earnings. As for Compaq, the stock will not perform until data shows they have solved their problems. Upgrades are muted. The stock will see less action than Free Willey. Talking tough won't do it. The stock will go when they show it in an earnings report. Selling Dell to buy Compaq is foolish at this point. The picture for Dell is clearer and bright. Compaq must deal with a merger with DEC. They have a channel that is stuffed. They are loosing notebook sales to Dell and IBM. Dell will eat into their server sales. Maybe there is a good reason they are at 1/3 the price of Dell? Pat