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

To: Lee who wrote (48501)	6/22/1998 2:03:00 PM
From: John Hauser	Read Replies (2) \| Respond to of 176387

Anybody remember when Intel (Intel's stock) was a market leader? I'm about ready for that to start happening again (and maybe it will start soon). It's been a long time. Go INTC DELL JH

To: Lee who wrote (48501)	6/22/1998 2:06:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Lee, I have some problems with those PEGs. The way I have always defined PEG's is P/E divided by long term growth rate expressed as a percentage. Those PEGs you cited imply long term growth rates for Dell and Gateway at 53% and 196% respectively. I think those may be one year growth forecasts -- certainly not 3-5 year forecasts. There is a more fundamental problem with PEG values. They totally ignore the uncertainty of the earnings forecasts. All other things being equal, companies with better earnings visibility will have higher PEGs. I think that the major differentials between GTW and DELL valuation is risk. Dell is perceived as much less risky than GTW because it has a demonstrated track record of sustained growth and sustainable growth. GTW has neither. GTW has promise. The market will reward GTW shareholders for their risk if and when that promise is realized. TTFN, CTC