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

To: stock bull who wrote (49470)	7/1/1998 2:13:00 PM
From: SecularBull	Read Replies (1) \| Respond to of 176387

Forward p/e is not that high...

To: stock bull who wrote (49470)	7/1/1998 11:16:00 PM
From: K. M. Strickler	Read Replies (1) \| Respond to of 176387

sb, Let's see now, uh, just how many times has DELL missed the expectation? Out of how many quarters? So, let's see, what are the chances? Regards, Ken

To: stock bull who wrote (49470)	7/2/1998 1:14:00 AM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Stock Bull, your point about the p/e is not well taken because traditional p/es are backward looking and they are meaningless as absolute numbers. P/Es have meaning in context of expected growth of earnings and long term interest rates. It is impossible to know exactly how interest rates are discounting those future earnings, so let's normalize the situation by comparing the P/E of Dell to that of the S&P 500. Dell has a P/E of around 60 with a growth rate of around 40%, yielding a PEG of roughly 1.5. The S&P 500 has a p/e of around 23 with a growth rate of 7 yielding a PEG of roughly 3. So in comparison to the S&P 500, DELL is cheap. Every stock is sensitive to expectations. Any stock failing to meet expectations will fall. That's one of the three reasons stocks decrease in price. The other two are decreased expectations of future earnings and increases in interest rates. TTFN, CTC