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

To: Chuzzlewit who wrote (64381)	9/9/1998 1:16:00 PM
From: Lucretius	Read Replies (2) \| Respond to of 176388

On a historical basis, cyclical co's like DELL have been valued at anywhere from 3 to 10x earnings, DELL blows away even the upper end of that valuation measure. Let's now talk about bookvalue and dividends. DELL has almost none of book and no dividend. At mkt tops these tried and true historical valuation models are thrown out and funky new methods such as momentum, growth rate=multiple on earnings and other such garbage are seen as the gospel because they have worked so well for the last 4 or 5 years. History is much longer than 5 years. Such thinking was also prevalent in the late 20's and you know how thta turned out. -Lucretius

To: Chuzzlewit who wrote (64381)	9/9/1998 1:53:00 PM
From: Lee	Read Replies (1) \| Respond to of 176388

Hi Chuzz, ..Re: there are three reasons for Dell to descend: 1. global depression - said the same thing back in April yet Europe and US still showing positive GDP growth. 2. Margins squeezed as a result of lowered ASPs - Margins are expanding in the last two reports, last one by 0.5%. 3. Overvalued - subjective determination by some mostly based on primitive measures. (We can't expect investors who wish to use book value or liquidation value in their selection process to understand the concept of PEG. ) In April we were advised to invest in Au, both XAU and stocks as well as the Nikkei. Look at the gains from April. tfc-charts.w2d.com Au weekly tfc-charts.w2d.com Nikkei weekly Sounds like some people want to shop at garage sales and junk yards for what they perceive as valuable prospects. To each his own. Sometimes when looking for cheap, you really get it! <VBG> Best, Lee