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

To: Gabriel008 who wrote (41277)	5/10/1998 11:11:00 PM
From: Boplicity	Read Replies (1) \| Respond to of 176387

Gabriel, Thanks, many investors get stuck in the the past, when using PE, for a valuation tool. Greg

To: Gabriel008 who wrote (41277)	5/11/1998 9:18:00 AM
From: rudedog	Read Replies (1) \| Respond to of 176387

One friend of mine has been using a second order measure of earnings (rate of growth) - kind of P / delta-E measurement - to get a handle on growth tech stocks. The idea is that: 1) these stocks provide value to their holders based on increase in share price rather than dividend or other static mechanism 2) people see the value of the instrument as a reflection of that growth so the earnings delta is a real reflection of worth 3) these factors outweigh fundamentals and forward-looking measures for many investors He has just started fooling with this but it makes sense for established growth companies like Dell. Of course nothing explains the internet stocks... He believes that this ties to why investors buy, which ties to whether they will keep buying (or will at least hold), which ties to whether the investment will maintain its value. He feels that this valuation puts the stock price almost as a separate instrument from the underlying company valuation, and instead reflects the rate of change of the underlying valuation (which kind of gets at Paul's perennial valuation question). On the other hand any time engineers start using math to look at money issues, we're in trouble...