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

To: Jim Patterson who wrote (55109)	7/29/1998 7:22:00 PM
From: jim kelley	Read Replies (1) \| Respond to of 176387

JP RE: In a bear market, DELL should trade at 5 times sales. Jim, I think you should take a look at a chart of long term book values for PC computer companies in the market. At the bottom of 1074, Price to sales was like .5 for the S&P. But alas there were no PC companies in 1974! In fact there was not even a PC industry. There was only Heavy Metal also known as big iron. So what was IBM price to sales ratio in 1974? Yes that means some were higher like 10 times because they had no nothing but leased assets and cash, but some were a lot lower too like.25 and mainly sold hair pins and other low tech commodities. But corporate stocks have been revalued by the baby boomers and foreign investors in this new worldwide economy and I think 5 times is not aggressive enough for a company like DELL whose profits double every 1.5 years. You have to remember, in a bear market, I am optimistic about the upside potential of the stocks. And a hardware company like DELL is a lot to get excited about. jim