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

To: Patrick E.McDaniel who wrote (62885)	9/1/1998 12:39:00 PM
From: JRI	Read Replies (3) \| Respond to of 176387

Pat- Having my calculator handy this morning... I calculated Dell's PE at 62 (with the stock at 105 and $1.69 trailing earnings).......Earnings grew at 62% last quarter...62 and 62 Now for Coca-Cola....Got out the paper....PE 42....Coca-Cola will be lucky to grow earnings at 15% THIS YEAR...42 and 15 Gilette.....PE 32.........Gilette will be lucky to grow earnings at 15% this year...32 and 15 Gateway....Don't even need to do the math...Valuation out of whack.. Internet companies....No earnings (save a few, Mindspring..Yahoo)....wouldnt want to touch them (except for maybe Mindspring, Yahoo) DELL REMAINS UNDERVALUED, YESTERDAY WAS EMOTION... Incredible as it may seem, many investors, investment commentators "concern" about Dell probably revolves around two things (1) The stock has run up tremendously over the past few years (2) The stock has a high PE... Point (1) is totally irrelevant to valuation, Point (2) is only relevant in relation to earnings....taken by its own, ie., "Dell has a high PE"....this means absolutely nothing..Yet, we hear this all the time (as a reason not to buy the stock)... (Note: Oil drillers have a very low PE....they've done fabulously this year..just kidding)... Finally, if today's rally holds, get ready to hear from all these commentators who claimed they called today's rally (who were no where to be found yesterday...) Just some musings on a crazy day....