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

To: Chuzzlewit who wrote (43640)	5/19/1998 10:14:00 PM
From: NickSE	Read Replies (1) \| Respond to of 176387

Good fodder for the bulls, P-E's AREN'T AS LOONY AS THEY LOOK businessweek.com@@BMNFpIQAcbEbigAA/1998/20/b3578113.htm (FYI, need subscription) Consider a company with a 15% earnings-growth rate when inflation is 5%. Kerschner (Paine Webber) says its p-e should be about 15. Cut the inflation rate to 3%, and the p-e for that 15% earnings growth rate doubles to 30. Cut inflation another point, to 2%, and the fair p-e jumps to more than 60. Says Kerschner: ''Just as with a bond, when you lower the rate at which you discount the earnings, the value increases exponentially. Regards, Caisson *Me thinks DELL PE should be around 200. ;^)