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To: Lucretius who wrote (1021)	7/9/1998 1:59:00 PM
From: SJS	Respond to of 14427

LT: About Shorting DELL (or keeping one's wits...and spare change): _____________________________ 13:16 ET PC Makers: Much of morning's move can be attributed to comments by analysts. Lehman Brothers called Dell Computer (DELL 100 +3 5/8) and Compaq Computer (CPQ 31 11/16 +1 7/8) its favorite PC stocks. Analyst at Salomon Smith Barney reiterated "buy" rating on Compaq and "outperform" on Gateway (GTW 61 15/16 +2 3/16). Notes that Compaq trading at only 15 times 1999 earnings projections. Based on the First Call mean, stock trades at 18 times the FY99 forecast, which is in line with the 18% per annum earnings growth rate analysts expect the company to log over the next five yrs. DELL and GTW currently carry P/Es of 38.5 and 21.6 vs expected growth rates of 27% and 20%, respectively.