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

To: nihil who wrote (67824)	9/28/1998 1:58:00 AM
From: jim kelley	Read Replies (1) \| Respond to of 176387

Nihil, DELL's current PEG is 0.8 which is a very healthy number. This allows some upside price movement without being extravagant. If the price were to stay the same by the time DELL reports this quarter's earnings DELL would be a raging buy. I would suggest that you would make more money by taking a longer term view of the company. DELL EPS growth rate is currently 72% not 30 to 50 %. Their revenue growth rate is 54%. Thus, stock price is very reasonable to those who believe in the company's prospects and management. The "cheap devices" that you have mentioned are special purpose devices which do not directly compete with the PC. A PC is by its nature a general purpose device. Thus, a cell phone does not compete with a PC. A set top box does not compete with a PC. A PC does not compete with TV. A Palm Pilot does not compete with a PC. So I am not as worried as you are about competition among the different species of special and general purpose devices. The Price Performance link which you provided is greatly misleading. It compares a new CPQ server against a DELL server that is a year older. So I am not concerned about that either. The CPQ server is not a better deal than the current DELL server. Remember also DELL is adding new business units in rapidly growing market segments. Currently, their only problem is in choosing among the many business opportunities that they have for investment.