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: Logos who wrote (45266)	5/28/1998 5:16:00 PM
From: Walt Corey	Read Replies (1) \| Respond to of 176387

re:You seem to expect Dell's share price to grow at a pace rapid enough to take PE past 100> Absolutely not. Although there are companies with P/E's higher than 100, I don't see dell doing that. I further don't see Dell being at $100/share post split again this year, but by next spring I do. I expect 3rd and 4th quarter to be very good, with respect to 1st and 2nd. Basing earnings on forward growth the P/E is closer to 40, not bad if they can grow their market. I would see their forward P/E climbing if they do, and, I expect they will. Walt

To: Logos who wrote (45266)	5/28/1998 8:42:00 PM
From: Chuzzlewit	Respond to of 176387

Hazem, thanks for an interesting post! Just one caveat: using a P/E of roughly the growth rate ignores interest rates. Clearly, when all other things are equal and interest rates are low a stock should have a higher P/E than when interest rates are high. Since I can't measure the appropriate relationship directly, I compare the relative PEGS by dividing the YPEG of the stock in question by the YPEG of the market. Using this criterion you find that DELL had a YPEG of less than 1 when it was $98 using 40% growth. That means that DELL is cheap compared to the general market. TTFN, CTC

To: Logos who wrote (45266)	5/30/1998 10:16:00 AM
From: jbn3	Respond to of 176387

re DELL split Hazem, Many of us on the thread do expect another split announcement this year. However, as has often been pointed out, a split does not of itself increase the value of an equity. It does cut the price to a fraction of its current level, making the stock more accessible to investors with more limited assets. Michael Dell makes a serious effort to afford the 'little' people an opportunity to participate in his company's success. Consequently, the company has historically announced splits which would reduce the share price to the $40-50 range. (Also, historically, the price has seldom languished there for long, perhaps in part due to the increased buying by the small investors at those levels.) Regards, 3.