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

To: jhg_in_kc who wrote (65444)	9/14/1998 1:11:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

jhg, don't fall into the trap of assuming that the stock will maintain its current multiple. Four years of 45% growth would yield earnings of about $11/share (assuming that ASPs are constant, no changes in margins etc.) Now, assuming further that the multiple were 15x forward earnings that would yield a stock selling for roughly $190. That implies that the annual appreciation of stock price will be around 33% per annum. The point is that much of this analysis is already priced into the stock, and that's why the development of new products and new markets is critical to the continued rapid growth of this company. TTFN, CTC