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

To: Jack T. Pearson who wrote (52459)	7/19/1998 10:42:00 PM
From: SecularBull	Respond to of 176387

Touche...Good point Jack. LoD

To: Jack T. Pearson who wrote (52459)	7/20/1998 2:10:00 AM
From: TwoToTango	Read Replies (3) \| Respond to of 176387

What a hit piece. The Times article suggests, in so many words that dell is "just another box maker," with nothing to sell that is "proprietary." If there is nothing to distinguish dell from other PC makers, WHY IS IT THAT DELL CONSISTENTLY RANKS HIGHEST IN CUSTOMER SATISFACTION RATINGS in the most respected pc magazines? Conveniently, the author avoids any discussion of the quality of dell's products vs its competitors. instead, we get an absurd comparison to another company, vanstar, that has issued an earnings warning. the writer tells us dell and vanstar share the "same customer base." What is the basis for making this comparison? There is none. It's just a wild analogy drawn by someone who's trying to get some attention. Query: has vanstar been growing at a rate even close to 50% on the type of earnings that dell has? does vanstar have internet sales? have they rocketed from $5 million to $6 million in the last few months? how is vanstar doing in europe, where the economies are going full throttle, like dell's sales in that region? how do vanstar's distribution costs and inventory controls compare to dell's? what kind of management team does vanstar have? do they collectively come close to matching dell's? and what about the fact that the top fund managers have been loading up on dell? is the same true of vanstar? did vanstar just receive a contract from the US Air Force? did KMart just order 8800 units from vanstar? if the times wanted to do a fair piece about stocks that are "overvalued" based on historic criteria such as p/e ratios, it should have included CSCO, AOL, LU, and CPQ. You won't find their p/e's posted at most web sites, as they are "not material." dell's p/e is high by "historic" standards, but how many companies have, in the entire history of the world, enjoyed anything remotely comparable to dell's high earnings AND its high rate of growth? arguably, not even MSFT is currently in the same league as dell, as MSFT has about the same p/e as dell.....but less than 30% growth rate. of course, with its tremendous sales volume, dell isn't going to continue growing at 50% forever....its growth rate has to slow over time. but there is no reason to think dell won't continue to enjoy phenomenal sales at a very high rate of growth. dell is far, far, far from overvalued in comparison to many of the other companies out there with extremely rich valuations and no earnings, or negative earnings. the author of "dell does not compute @ 117" gets an "F" in analysis and objectivity. (if you want to see a truly overvalued company, take a close look at CPQ, with its 1.6 BILLION in outstanding shares selling at $30 plus....and pathetic earnings!!! )