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

To: Jim Patterson who wrote (44109)	5/21/1998 2:03:00 PM
From: Chuzzlewit	Read Replies (3) \| Respond to of 176387

Jim, if you start to act and think like an investor rather than a trader, you will see how devoid of logic your argument really is. I define an investor as one who puts his money into a profit generating enterprise in the hope of realizing an economic profit as a result of the operations of that enterprise. Let's assume (warning: these are merely assumptions made for illustrative purposes-- I am not asserting them as facts) for the sake of discussion that DELL is properly priced at $89, but as a result of being caught up in the euphoria of earnings madness you bought at $95. Lets further assume that the long-term growth rate is 40%, and is a perpetuity. So, a year from now the stock will be worth $124.60, and ten years from now it will be worth $2,574. But what would your annual rate of return have been had you bought at $95? It turns out that it's 39.09%! TTFN, CTC

To: Jim Patterson who wrote (44109)	5/22/1998 1:43:00 AM
From: K. M. Strickler	Read Replies (1) \| Respond to of 176387

JP, I have to agree that it is important for a company to beat the estimates, BUT IT SHOULDN'T BE! It seems to be 'historical' that not meeting the estimates results in a stock price drop, which is further depressed by a downgrade by a valued 'anal-zit', where a few 'large' blocks of stock are 'traded', further 'downgrades', more stock 'traded', and then the re-visitation by the 'anal-zits', the 'upgrade', stock price rise and we are off to the next quarter. It's like they are following a 'script'! Regards, Ken