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

To: Boplicity who wrote (52074)	7/18/1998 2:36:00 AM
From: LPW	Read Replies (2) \| Respond to of 176387

To the poster who asked about whether its 'too high' now to buy in, here's some help in making the decision (someone already posted the relative p/e's earlier): ROE (Return on Equity - visit www.fool.com if you are not familiar with this ratio): Dell 74% MSFT 33% TLAB 32% EMC 25% I own all of the above (I know technology, so I totally focus my investments there), and I think all are great stocks, but I don't know of any stock that compares to Dell - they have an ROIC of 186% and the mantra of '186% ROIC' keeps me adding every month. If it helps, I just added another 10% to my Dell holdings today (mentally repeating 186% ROIC, 186% ROIC :-), right near the record high - I have been in and steadily accumulating since Dec.97. Also, you should note that their CFO mentioned: 'Dell has been spending 60 to 70 cents of every dollar of cash flow to buy back stock and does not plan to reduce that ratio.' Wow - That alone tells you that Dell thinks the best investment for their own funds is in their own company, and is a great sign in their belief in their future. I have seen a lot of posters jump on here about how the end of Dell is coming whenever the stock dips more than 8-10 points, and you will see them in the future. Recently, Dell has not gone below its high by 20% and last time it did (99 ->84ish) I loaded up on even more and told all of the people whose money I help manage to do the same (also bought more msft around 84 then as well), even though some of them were worried since the previous month we bought at 94. The stock will ebb and flow, but as Peter Lynch advises, you are buying a part of a business and should focus on the business financials and macroeconomics more than the stock 'price'. As earnings grow, the stock over time will track that earnings growth. Dell is extremely well positioned in the worldwide technological revolution in which 30% of the user base upgrades every year, and the user base grows by 15% per year. Further Dell only has 8% of this worldwide base, but is well positioned to grab significanly larger chunks of it over time with their excellent business model and business 'focus'. I also took an opportunity to check out Dell from the consumer experience when I interceded and ordered a Dell computer myself on behalf of a friend whose money I help manage, specifically to see firsthand the typical customer experience - they promised it would ship in five days, it shipped in two (underpromise, overdeliver) - customer service was sharp and intelligent - a great customer experience, I bought more Dell. Anyway, my advice to you on your question - Focus on five years from now, be happy when people short it b/c its their inability to look at the big picture that drives them to do it and their eventual loss that helps fuel your gains, and BUY MORE DELL. btw - this thread has become on of my favorite places next to my microsoft investor portfolio manager (where I can watch Dell go up) - thanks to everyone for all the great news updates I have gleaned from this site, as well as the humour and good cheer. LPW