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: Geoff Nunn who wrote (51752)	7/16/1998 6:04:00 PM
From: On The Tube	Respond to of 176387

Good Evening To All! CNBC's Nasdaq 2000 hour-long special continues... They just put Michael Dell's net worth at $11.6 billion and that does NOT include his 6.33 million stock options. They also pointed out that DELL's stock price has jumped 2,458% in 3 years...since July 17, 1995...the exact date when the Nasdaq crossed the 1,000 mark! Finally, they point out that "$1,000 INVESTED IN DELL SINCE JULY '95 IS WORTH $30,083 TODAY."!!! Looking VERY forward to the shareholders meeting tomorrow. Again, if you're not fortunate enough to attend in person...you can listen to it live over the net at this address: events.broadcast.com Tomorrow could be another VERY positive day...especially if DELL releases big news at the meeting (2-1 split?). We will have some allies to help us tomorrow in the form of MSFT which just beat the street .50 vs .48! They are also saying "Windows 98 Momentum Strong"! Also...SUNW had very positive earnings beating the street. Finally, there is a report out tonight talking about how sub-1,000 pc's are falling out of favor to the more high end...DELL's territory! If you missed that link earlier, here it is: dailynews.yahoo.com DELL is the grand marshal of "our" parade tomorrow. My forecast does NOT call for rain! LONG live DELL!!! On The Tube

To: Geoff Nunn who wrote (51752)	7/16/1998 6:07:00 PM
From: R.B.Williams	Respond to of 176387

To: J Nabors Great meeting everyone today. I will get to the Convention Ctr. early with Marj in the morning and will try to save about 10 seats. Do we need more? The factory was IMPRESSIVE, their output is HUGE, their inventory is non-existent which is EXTREMELY COMFORTING,and their outlook is VERY PROMISING. All in all, a very satisfactory tour and DELL IS UP AGAIN TODAY! See you in the AM. "Hello" to everybody! Rose Betty

To: Geoff Nunn who wrote (51752)	7/16/1998 6:08:00 PM
From: Dell-icious	Read Replies (1) \| Respond to of 176387

The thread has been quiet for over an hour now! I suppose the frequent posters are in or on their way to Austin ;) Meanwhile, today's rise was the 7th consecutive up day and 6th consecutive record high. Any thoughts how long this will continue, anyone?! My guess is that DELL will take a breather tomorrow, after the annual meeting and MSFT results (sell on news). Dell-icious

To: Geoff Nunn who wrote (51752)	7/16/1998 6:49:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Hi Geoff, I'm glad that you're finding my normalized PEG ratio interesting. First, a PEG ratio is supposed to be a quick and dirty valuation method. The idea is that a stock shouldn't be selling at a forward P/E of greater than its long term growth rate. The problem is that the PEG doesn't take into account such niceties as inflation rates and risk free market rates of return. The problem is that these rates are not so easy to figure out. In addition, the issue of riskiness of the forecasts is conveniently ignored. So, by comparing the PEG for any particular issue you can at least normalize for discount rates using stocks of average riskiness. Jim Leon suggested using more narrowly defined PEGs like a NASDAQ PEG. I'm still mulling that one over. It doesn't make sense to adjust for dividends, since dividends have a simultaneous effect by decreasing future earnings and decreasing the price of the stock. If the earnings were to stay within the company, presumably it would experience greater growth through reinvestment, and it would also have a greater stock price. Therefore, the effect of earnings would wash because both the numerator and denominator would increase proportionately. While I think dividend adjustments don't make theoretical sense pre tax, there is a tax consequence to be calculated. Since dividends are taxed as ordinary income they are less tax efficient than reinvestment which is taxed as capital gains. So all other things being equal, a dividend paying stock should have a lower P/E than a stock paying a dividend. Maybe when I have a chance I'll work out the math on this. Just bear in mind that the "normalized PEG" was intended as a quick and dirty relative valuation tool. TTFN, CTC