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

To: michael modeme who wrote (79565)	11/13/1998 1:48:00 AM
From: hsg	Read Replies (1) \| Respond to of 176387

I'm not sure I agree. One way to define a growth stock (from an investment standpoint) is that both the earnings and the P/E are growing. When you multiply the rising earings by an increasing P/E you get a rapidly rising share price. At some point exponential growth must slow and in most cases, when this happens, the P/E that investors are willing to pay decreases as, looking into the future the picture is not as bright. A falling earnings rate multiplyed by a falling P/E can of course bring a stock down pretty quickly. I am not at all knocking Dell which is a fantastic company by any measurement, but I question the ability of the P/E to remain at these levels and I also think that most companies that are wildly successfull eventually revert to the mean. I am glad that all of you are making $, but I would not pay 81x earnings for anything. Just my opinion.