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

To: Chuzzlewit who wrote (51500)	7/15/1998 5:25:00 PM
From: jimleon	Read Replies (1) \| Respond to of 176387

Hey Chuzz, recall about a month ago dell was sleeping around 86 a share and all the TA guys were screaming sell!! WHERE are they now???????????????????????????????????? My summerhome will have "deluxe" prowl and more glass windows thanks to this hell of a rally!!!!!!!! Still waiting for the building permit... jim

To: Chuzzlewit who wrote (51500)	7/15/1998 7:12:00 PM
From: T L Comiskey	Read Replies (1) \| Respond to of 176387

Chuzz...hope you dont mind if i but in to thank you again for walking us through this PE debate.......many of my friends argue against my dell position only to stare in amazement as it moves north....your clear vision and explanation are valued...Thx tim

To: Chuzzlewit who wrote (51500)	7/15/1998 8:32:00 PM
From: Huntress	Read Replies (1) \| Respond to of 176387

Yes, Huntress is for Diana (preferable to "Mooner" don't you think?) Thank you so much for that great explanation...I enjoy your posts, too - especially since you are such a smart cat...my cat, Snip, is jealous of your market expertise!! He just keeps up with the Catnip Index...again, thanks!!! BTW, are you attending the meeting? I am definitely going to be there but it will probably be crowded and since the SI Dellheads are such a sedate group, I probably won't be able to spot them <ggg>

To: Chuzzlewit who wrote (51500)	7/16/1998 4:51:00 PM
From: Geoff Nunn	Read Replies (4) \| Respond to of 176387

Chuz, I've enjoyed reading your various posts concerning the deficiencies of P/E and PEG in valuing stocks. If one is going to use PEG, I do like your suggestion of normalizing it, i.e., using the ratio of the particular stock's PEG to the S&P's PEG. I am curious though whether this measure may be misleading for stocks that pay dividends. What is PEG supposed to measure? Presumably it compares how high the stock is priced (the PE ratio) relative to its investment return (the growth rate in earnings). This sounds reasonable to me if the stock pays no dividend. In cases of dividend stocks, however, the total return is g + d, where d is the dividend yield. Therefore, I wonder if the statistic PEG shouldn't be modified to become PE/(g+d). In the special case of a stock which pays no dividend it would reduce to PEG. You mentioned that Dell's normalized PEG is less than 1.0. Would this still be true if we modify the S&P's PEG for dividend yield. I'm not sure what the correct figure is but believe it to be ~2.0%. Two questions: (1) would you regard adjusting for dividend yield as legitimate, and (2) would it have made any difference in your conclusion that Dell's normalized PEG is less than 1.0? Geoff