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To: Helios who wrote (15314)	7/24/1998 3:30:00 PM
From: Ibexx	Read Replies (1) \| Respond to of 77400

Helios, Don't get me wrong; I certainly don't deny the merits of DELL's model--but that isn't proprietary. Long term prospects of DELL is far from clear. Ibexx PS: I still own substantial amount of DELL stocks and shorted puts.

To: Helios who wrote (15314)	7/24/1998 3:30:00 PM
From: The Phoenix	Read Replies (2) \| Respond to of 77400

Helios, Wal-Mart is trading at 1.1 times revenues and has a high PE for a retailer of just under 40. DELL is trading at nearly 5 times revenues and has a PE of 70. At the same time DELL's profit margins are around 7% whereas Wal-Mart's are around 3.5%. And, growth rates for DELL have been higher. Nonetheless I think you have the right idea - we should be comparing DELL against the retailers. Now the question is, do the growth rates continue...if not is the PE too high? Gary