To: Sig who wrote (58464 ) 8/17/1998 9:26:00 AM From: Gary Ricks Read Replies (3) | Respond to of 176387
Just more info...stock of the week pick on stockwinners.com... What is this Week's Selection? This week we are featuring one of the bluest of the blue chips. Dell Computer Corporation designs, develops, manufactures, markets and services and supports a range of computer systems, including desktop, notebooks, and enterprise systems (includes servers and workstations). It trades on the NASDAQ under the symbol DELL. Business Summary: Dell Computer Corporation (DELL) is one of the world's top PC Makers and the world's #1 direct-sale computer vendor. Led by founder Michael Dell (the longest-tenured CEO of any major US computer company), who owns 16% of his creation (103,047,382 shares), the company sells hardware and markets third-party software and peripherals. Products include Latitude notebook computers, Dimension and OptiPlex desktop PCs, and PowerEdge servers. Dell's third-party products include CD-ROM drives, modems, monitors, networking hardware, memory cards, storage devices, printers, and speakers. More than 90% of its systems are sold to businesses and government entities. Fundamentals: The company has an earning of $1.45 per share (P/E of 74); Net Profit Margin of 7.7% and Return on Equity of 88.95%. Earnings growth rate is the real story with this company. Company in the past 5 years has had a 68.4% earnings growth. Forecasts for earnings growth for this year are 53.3% while estimates for next year are 32.3%. For comparison purposes, S&P 500 companies have an average P/E of 23.1. It trades at an average daily volume of 16.9 million shares with a market capitalization of $66.8 billion. The company is in the Computer Hardware Sector according to the S&P. It is ranked 5 out of 9 companies in the sector. The companies in this sector have an average PE of 44.63. There are 639,085,391 shares outstanding. Short Interest (as of July) on the stock is 28,127,996 (2.13%). Average price of the stock (50-days) is $99.17 while the 200-day average price on the stock is $69.34. Stock has a 52-week trading range of $28 1/16 (7/02/97) to $118 1/4 (7/20/98). It last traded at $105 5/8. Dell Computer Corporation (DELL) employs 16,000 people and is headquartered in Roundrock, Texas. Director of Investor Relations could be reached at (512) 338-4400. To see the latest research report on the company, Click Here. A total of 30 brokerage houses follow the stock. There are 8 Strong Buys, 12 Moderate Buys, 9 Holds, and 1 Strong Sell on the stock. Click Here to see the company's Latest Quarterly Report dated June 11, 1998. For the company's latest Annual Report, please Click Here. To view the latest Balance Sheet on the stock, Click Here. There are 877 institutions listed as stock holders owning 53.28 % of the shares. Mutual Funds had a net sale of 26.19 million shares in the past 3 months. Special Notes On June 1, 1998, Dell Computer in its proxy statement informing stock holders of its July 17, 1998 annual meeting; requested stock holders approval to increase its number of shares. Page 7 of the proxy statement states " ...The Board of Directors is proposing an amendment to the Certificate of Incorporation to increase the number of authorized shares of Common Stock from one billion to three billion....." The proposal was approved on the July 17 meeting. Historically speaking, company has split its stock at around $110. Stock is presently trading at $105 5/8. Company is reporting earnings on August 18 after the close of market. We should see strength in the stock prior to its earnings date. We expect company will beat the estimates and may announce a stock split. The last split was announced on Feb 19 (Stock price of Feb 9 was 109 5/8) when company reported earnings. Technical Discussion: Stock last traded at $105 5/8, down 7/8. The Computer Systems Index along MACD for the sector is shown as Figure 1. The two year price chart on the stock with 50-day MA is shown as Figure 2. Commodity Channel Index (CCI) (Figure 3), and MACD (Figure 4) have yet to turn bullish. We expect this week with the pre-earning anticipation, they will turn bullish. Stochastic and Wilder Relative Strength on the stock are shown as Figures 5 and 6, respectively. For a discussion of technical terms mentioned above, refer to our Technical Analysis Section. Our Short Term target is $117. Our Stop/Loss is at $100. Long term (one year) target is $200.