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

To: Chuzzlewit who wrote (68486)	10/1/1998 12:43:00 AM
From: kahunabear	Read Replies (1) \| Respond to of 176387

Chuzzlewit, And sixty odd years ago we were in a depression Nobody makes money in a depression. And yes, I understand the relationship between interest rates and PEs. A PE of 77 implies an interest rate of about 1.3%. I think there is a chance DELL will not match trailing earnings if we have a recession. They may exceed it. But given the state of the world, I think the risk is high and deserves a lot higher implied rate of return. BTW, rates on anything with much risk have been going through the roof. Have you checked REITs, high yield bonds, bank dividends, third world debt, etc. This credit spread is what caused Long Term Capital to stumble. It sounds like you think there is less risk here than I do and that you put more confidence in the numbers. Agree to disagree ? WS