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

To: William C. Spaulding who wrote (59578)	8/19/1998 2:11:00 PM
From: Dell-icious	Read Replies (1) \| Respond to of 176388

P/E is 72. SO WHAT?! Earnings are growing at > 50%. Compare that with say KO which is at a P/E of ~50 with earnings growth < 10%. Which one is undervalued? Dell-icious

To: William C. Spaulding who wrote (59578)	8/19/1998 2:14:00 PM
From: DoggieDude	Read Replies (1) \| Respond to of 176388

I thought my post might get you to stop lurking today :-)

To: William C. Spaulding who wrote (59578)	8/19/1998 2:24:00 PM
From: Mohan Marette	Respond to of 176388

I hope you don't mind if I go to the bank with my moolah from DELL while you wait.<VBG>

To: William C. Spaulding who wrote (59578)	8/19/1998 2:44:00 PM
From: eric deaver	Respond to of 176388

<<Even with its good earnings, at 110, it still has a p/e greater than 66, at 120, it is over 72>> That is absolutely amazing - and people think this market isn't over priced - go figure. Eric (back to lurk mode)

To: William C. Spaulding who wrote (59578)	8/19/1998 3:19:00 PM
From: Mohan Marette	Respond to of 176388

<--OT--->< Low P/E you want? I say BS--> You like low P/E eh? Boy do I have a deal for you!!!! Here are couple of them you may want to load up on right away. Numero Uno = BS [PE 6.98, current price=$9 and change ] Numero Dos = CHRB [PE 5.92, current price= a buck and a quarter] No,no need to thank me now as you will probably 'cus' me later.<vbg> PS:No guarantee of making any money but low P/E you shall have.

To: William C. Spaulding who wrote (59578)	8/19/1998 3:38:00 PM
From: Chuzzlewit	Respond to of 176388

William, that's what you get by looking at life backwards. A P/E is the ratio of what you would pay today to get last years earnings. When you buy, you buy at the current price for future earnings. Well, I see a bunch of the investment houses are increasing their earning estimates for Dell. I think that earnings will come in at around $2.64 for the next four quarters. With Dell selling at roughly $120 we have a P/E of 45. Given Dell's growth I don't consider that too expensive. The pundits on Wall Street have consulted their crystal balls and seem to think that Dell will come in with earnings for the year of around $2.10. That implies a growth rate Y/Y of 64%. But we know how these guys love to underestimate. Given their performance, it's probably reasonable to guesstimate annual earnings of closer to $2.18 which yields a growth rate of 70% based on eps. TTFN, CTC