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Technology Stocks : DELL Bear Thread -- Ignore unavailable to you. Want to Upgrade?

To: Richard Tsang who wrote (1271)	7/22/1998 10:37:00 AM
From: SecularBull	Respond to of 2578

Richard, you ask a good question. I believe that by historical standards, DELL is very richly valued. There's no denying that. But, do we operate businesses by constantly looking in the rearview mirror, or do we look forward more often that not? I think the latter, and I think that as the market rises, market cap benchmarks should rise, too. DELL is valued at the combined value of CPQ and GTW at present. I think that this is a realistic valuation given CPQ's turmoil, and GTW's second-tier classification. As long as GTW continues to focus on the low margin consumer business, they'll never make the progress that DELL has made. I think a major item that many people discount about DELL is its ability to penetrate the high-end enterprise computing markets. Only a little more than a year after entering the workstation market, DELL has surged to the top echelon of workstation manufacturers in terms of market share. The naysayers said that couldn't be done. Now DELL is seriously going after servers and storage technology. I have no doubts that DELL will succeed at the cost of IBM and CPQ(DEC & Tandem). With these prospects in mind, I think you can justify a 100+ billion dollar market cap. Regards, LoD