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

To: K. M. Strickler who wrote (43571)	5/19/1998 7:50:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Ken, if you are talking about the post to Craig, it is full of misinformation: The assertion that profits are not growing as fast as revenues is untrue -- they are growing faster due primarily to improving gross margins. There is an assumption that the stock trades on the basis of ASP. This is untrue. It trades on the basis of expected future cash flows. There is the unwarranted assumption that P/E expansion ought not to take place absent increases in growth rate. This is untrue because it ignores several factors: 1. The decrease in long-term interest rates; 2. The positive money flows into the equity markets from retirement plans; and 3. The possibility that the stock was undervalued to begin with. "Generating 1.5 billion in revenue is easier than generating 7 billion in revenue." -- apparently the author of this little chestnut never heard of the concept of critical mass -- i.e. there is a point in the marketplace where general product acceptance takes place. There is absolutely nothing negative in the report. The issue of whether certain unknown pundits had correctly forecast Dell's earning is another issue altogether. TTFN, CTC