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

To: Boplicity who wrote (39991)	5/2/1998 11:11:00 AM
From: Keith Howells	Read Replies (1) \| Respond to of 176387

Greg, The article is the same old stuff from the same old talking heads printed over and over again. They just don't get it. When my wife and I got married, almost 25 years ago, we bought our first new car, a Toyota Corolla, for $3,900.00. The car now sells for what, maybe $12,000.00? An increase of 300% over the 25 years or about 12% per year. I don't think wages have increased at that level over that last 25 years. It takes a greater percentage of an individuals income now to afford the same car than it did back then. It's value has changed. With money flowing into the market from folks like me, who won't put money into a savings account to save for my retirement, stock valuations are going to change, just like they did for the car. The market is pushing them upward. I could go to a Toyota dealer and insist that the value of the Corolla is completely out of line, and that is should really cost maybe $7,000.00, and they should give it to me for that price. After they stopped laughing, they'd tell me to quit wasting their time. The analysts in Barron's are just like a person who would try that type of stunt. They want all stocks to have a PE of 20-25, or lower. When they can't get them for that, they start talking about the over valued market, stocks crashing, end of the bull run etc. Just like the car dealer, every time I read about valuations, I start laughing. Those boys need to get a clue. They are changing and they could go higher. Maybe at some point that fact will sink in and they'll start rethinking what they put in print.

To: Boplicity who wrote (39991)	5/2/1998 12:04:00 PM
From: jbn3	Read Replies (4) \| Respond to of 176387

re "Bearons (sic) (Vbg) article" Greg, thanks for the post. Found the following items tres interessant '... Kevin McCarthy, an analyst at Donaldson Lufkin & Jenrette, lowered his recommendation on Dell ... "I just think it's dangerous to assume that Dell could continue to operate in a separate environment from Compaq," he explains.' Note the 'continue to operate in a separate environment' -- what indication do we have that anything has changed? 'Even if price pressures have only a marginal effect on Dell, the stock could be hurt because it reflects such optimism. Just last week it was labeled "the last hot computer stock" on the cover of Fortune magazine, a dangerous indicator if ever there was one.' Dell's stock kicked off 1998 at $42, and last Wednesday, it hit $77, an 83% return for those who were lucky enough to buy at the turn of the year. Shares have responded to recent bullish remarks by Michael Dell, chief executive officer and founder of the Round Rock, Texas-based company. Dell predicts that his company will grow faster than the rest of the personal-computer market this year. The stock now trades at 30 times 1999 earnings estimates.' As I have stated before: Dell, the man, and DELL, the company, both have too much to risk by senior executives making misleading statements (even if Michael did not possess the enormous integrity we ascribe to him, which would prohibit him from doing so). This is doubly true for forward-looking statements which would be very easy to hedge at the slightest indication of trouble. So who should we believe? I personally trust Michael and hope that the article creates a dip in price, as I plan to buy 300-400 more this week. DELLish, 3