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

To: Ed Zhao who wrote (43290)	5/19/1998 3:10:00 PM
From: Lucretius	Respond to of 176387

so you're saying DELL is a bargain since we can pick it up for a little less than twice Sony? (ggg)

To: Ed Zhao who wrote (43290)	5/19/1998 3:12:00 PM
From: Lee	Read Replies (1) \| Respond to of 176387

Ed Zhao,..Re:<< It's difficult to predict the future but it's easier to compare the value:>> You are defining value as market cap. Now what premium would an investor pay if that market cap growth is estimated to be better than 25%/yr (conservatively) for the next several years? Regards, Lee

To: Ed Zhao who wrote (43290)	5/19/1998 3:14:00 PM
From: John Hauser	Read Replies (1) \| Respond to of 176387

Ed, Checked out your link under your personal profile. Is this a fund you've managed? Quite an underwhelming return on your investments. Should have just bought Dell. JH

To: Ed Zhao who wrote (43290)	5/19/1998 3:31:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Ed, I'm not sure I understand the point you are trying to make. I view a company as a black box that spits out cash. The value of that black box is not determined by what the wood or black paint cost, but the value of the net cash stream that that company is likely to generate in the future. In that respect it's no different than a zero coupon bond. The problem is the uncertainty with regard to future cash flows. It is obvious that the market as a whole believes that the present value of those Dell's cash flows is twice that of Matsushita. This analytical framework has nothing to do with historic costs, profit margins, cash on hand, total sales, etc. It is simply based on cash. This is the same framework David Stern was using. My post simply pointed out what I believe to be the flaws in his assumptions. I am sure that David would concur that we agree in the philosophical approach, but disagree in the assumptions. TTFN, CTC