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

To: Tradegod who wrote (43253)	5/19/1998 1:50:00 PM
From: Patrick E.McDaniel	Read Replies (1) \| Respond to of 176387

Tradegod, do you recall where you got your .45 whisper from? Just for my information, Pat I also got .45 from an internet news article.

To: Tradegod who wrote (43253)	5/19/1998 2:04:00 PM
From: Chuzzlewit	Respond to of 176387

Tradegod, your arithmetic is correct, but your implied conclusion may not be. There are several additional variables to ponder. For example, general market valuations have increased (I don't have the numbers off the top of my head, but I'm sure someone out there does). Secondly, the market is a discounting mechanism, and as you move on in time what was once the future becomes the present and becomes more important. Furthermore, those spurts in prices were due to substantially beating the estimates. Remember that the greater the uncertainty about estimates the less the present value of the estimate (hence "risk-adjusted discount rate), and probably each additional earnings period reduces the risk-adjustment portion in investors' eyes. Three years ago investors were a lot more skeptical of Dell's ability to consistently deliver earnings than today. TTFN, CTC