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

To: Dr. D who wrote (60244)	8/22/1998 10:33:00 AM
From: Martin A. Haas, Jr.	Respond to of 176387

Donald and other Dell faithful, from Aug 24th Barrons "Apparently not. Witness Legg Mason Value Fund, which manager Bill Miller has on target to beat the S&P 500 for the eighth straight year. Dell remains the $5.5 billion fund's largest position, about 9% of assets. Their cost basis: $4.44 a share. Lisa Rapuano, assistant portfolio manager, says Dell has enjoyed a perfect environment, with declining component costs, stumbling competitors and expanding market share. "You can't expect they'll pull out that kind of gross margin and top-line growth every single quarter," she says. "But what's always happened is that analysts always model for lower growth and gross margins going forward, and Dell always outperforms." However, the analysts have become more aggressive. "My model for Dell has always been way above the Street's," Rapuano says. "But the last several quarters, the Street has been catching up to me. The level of surprise will slow down going forward." Rapuano expects profits of $2.10 a share for the January 1999 fiscal year, and $2.90-$3 in fiscal 2000. Hardly sounds like a value play, at roughly 57 times current year earnings, and about 40 times next year's. So, does the fund plan to sell? Nope. Says Rapuano: "We'd have to find something better." Regards, Marty