Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: jim kelley who wrote (45103)	5/28/1998 11:34:00 AM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Jim, pessimism takes years off of your life! Why be lugubrious when you can be an optimist. How else can you explain Kemble being 96 years old and still wrestling? On a more serious note, isn't optimism the driving factor behind entrepreneurs? These are people who will risk everything in pursuit of their visions. These aren't people with pollyannish world views. They are simply convinced that they can overcome hurdles and make it. And isn't capitalism the mechanism whereby the entrepreneur can realize his dream? So I look at a company like Dell, and I ask myself what's not to like? The answer is nothing. There is not a single negative thing I can point to in this company. I don't believe another company exists with the inventory and cash management capabilities of Dell. And Dell is an innovator. Its direct sales model and internet sales are the paradigm for the industry. So the Dell bears are left with three possible answers: 1. The whole computer industry is going to crash and burn. Nobody needs these computers and the ASPs are falling like a stone and SE Asia is going broke and we're headed for either hyperinflation or deflation, and the only safe place to put your money is in gold. [The generic bear really likes this one] 2. The company is great but the stock is overvalued. David Stern justifies a lower valuation using a DCF/CAPM approach. Some months ago we had a Dell bull use exactly the same approach (but with different assumptions) to justify a higher price. I criticise that approach because it requires too many assumptions about how the market values a security. It really says more about how David values this security then what the security is really worth. 3. The charts say ... [No comment. This is a family oriented thread] So again, what's not to like? TTFN, CTC