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

To: stock bull who wrote (58896)	8/18/1998 12:41:00 PM
From: JRI	Read Replies (1) \| Respond to of 176387

Stock Bull: (If I heard correctly) I found Murphy's comments (about CPQ being a better investment than Dell to be misleading) He said Dell trades at 50 times forward earnings, while CPQ trades at about 20 times NEXT YEAR'S earnings... (Of course) He is using CPQ's next year's estimate because they will hardly make money this year, however, IT IS UNFAIR TO USE ONE COMPANY'S (PRICE) EARNINGS (RATIO) FOR THIS YEAR (DELL) AND COMPARE IT TO ANOTHER COMPANY'S (PRICE) EARNINGS (RATIO) FOR NEXT YEAR (COMPAQ). This unfairly magnifies his argument. It is this kind of hodgepodge that is confusing the average investor...I wonder if Murphy's comment had anything to do with the fact that he owns a huge position in CPQ.... To all: If I misheard him, please correct me.....

To: stock bull who wrote (58896)	8/18/1998 12:41:00 PM
From: GRANOLA	Respond to of 176387

Stock Bull, and all: All of the analysts and portfolio mgrs on CNBC favor CPQ over DELL SIMPLY BECAUSE OF DELL'S HIGH P/E (valuation)...these guys are paid to find and invest in "good values" which, on the surface, CPQ appears to be and Dell does not. As many on the thread have pointed out, turning CPQ around and actually registering profits and growing revenues is a lot more easily said than done! Dell will come in at .48 or above, SPLIT will keep shareholders and attract new ones, and everyone will soon forget about CPQ if they are smart enough to own Dell... ...and investment mgrs will get their modest returns out of CPQ as it turns around...but they will miss Dell's phenomenal returns. ...look at the mutual fund YTD returns against your own, OK? Mine personally is over 110%, and I would bet many of you Dell owners are good at picking other winners too... JMHO of course, and as I have said the overall market is more of a factor anyway...BTW Dell just sold off a bit following that CNBC interview, and now folks are buying it back up...think for yourselves before you believe everything you hear on CNBC or otherwise...go dell!