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

To: SecularBull who wrote (57411)	8/10/1998 5:36:00 PM
From: jhg_in_kc	Read Replies (1) \| Respond to of 176387

LOD, I see, you regard a price of below 118 as a fair value and 118 and above as "unfaiR" or "too high" as in "overbought" going I guess by price/ earnings ratio. But this is a bit arbitrary. Look at the ratio for Yahoo. IT approaches an infinite number. By that standard, Dell is a bargain. THe rules of thumb are changing in the stock market as in baseball. Babe Ruth could hit 90 home runs today; the ball is lighter. PEs maybe should be more than the traditonal; the market is lighter; earnings mean more because there is no inflation; the ball is lighter. This is not the 20s but the 90s. Actually, it is similar to the fifties, IMO. A golden era. FYI Go to yardeni.com and when you have time read The Economic Consequences of the Internet or the Economic Consequences of the Peace. These are my touchstones But regarding Dell to sum up I think you were probably right Based on available info, too many people paid a wee bit too much for the stock 2 weeks ago when it got to 118. But we buy on more than just available info. We buy on future prospects and the quality of management, too. I really don't think there is such a thing as overbought or oversold. I know this debate occurred once before. I belileve there is just a market price which may be reasonable or not based on the intrinsic value of the stock (which I confess I'm not bright enough to calculate accurately a la Warren Buffett but I use my intuition. ) cheers jhg