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

To: jhg_in_kc who wrote (66465)	9/21/1998 8:41:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

A happy and healthy new year to the thread. Now to valuation issues. jhg, these points are trivial. Every business eventually becomes mature. Every business is priced according to investor expectations. Every business either evolves or becomes extinct. Does anybody make typewriters anymore? IBM used to make good money from Selectrics. If you recall, I've been prodding the thread for ideas for the direction that Dell needs to take in the next several years in order to maintain hypergrowth for just such reasons. Second, anyone who prices stocks according to heuristics like multiples of sales and P/E is looking for trouble. Valuation is a much more complicated exercise, and ultimately depends on discounting the perceived stream of future cash flows (which extend forward indefinitely) at a suitably risk-adjusted discount rate. The market is a discounting mechanism that does just that. What this should mean to all of us is that the perception of the risk of maturity, senescence and death is already priced into every stock. TTFN, CTC