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

To: Satellite Mike who wrote (43097)	5/19/1998 2:05:00 AM
From: Massimo	Respond to of 176387

Dell's PE is now 70.31. When is this number adjusted? After every Q, every year or what? Thanks

To: Satellite Mike who wrote (43097)	5/19/1998 2:18:00 AM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Michael, from analysts' comments, Dell is expected to grow at 40% per year. I suspect that the valuations imply a greater growth rate -- perhaps 50%. If it appears that this number is compromised we could see a retreat in prices. As an example, PSFT was trading at around $56 prior to its last earnings announcement. In its press release the CEO said that he expected the company to grow at 55% - 65%, which was down from the previous estimate of 65% - 75%. As a result of a 10% decrease in growth, the company lost about 16% of its market cap. That is the nature of growth companies, and that's why when these companies beat the "whisper" number they tend to go ballistic. That's why I believe that Dell will need to have earnings of around $.44 for the current price to hold. I think that anything better than $.45 will send the price skywards. TTFN, CTC