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

To: Chuzzlewit who wrote (67609)	9/26/1998 4:38:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Thread, I blew it, I blew it I blew it. I forgot to take into account the split. The offending paragraphs should read: I expect Dell to exceed that estimate ($2.81) in three years. If memory serves me correctly, Dell earned $.25 this last quarter. So using this number as a point of reference, if earnings grow at 44% per annum, we can expect that earnings over the next four quarters will total about $1.27, and will total $1.82 in the following four quarters, and $2.63 in the next and $3.79 in the the next and finally $5.46 after five years. Note: these are not FY or calendar years. They simply represent years from now commencing with the period ending October 31. So now, assuming his trailing P/E of 30 (which under his assumptions is a forward p/e of 26), that represents a stock selling for $164.28 With the stock currently at about 66 that implies a 20% per annum rate of return. These numbers assume no change in the number of shares o/s, and no change in margins.