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


To: jim kelley who wrote (79575)11/13/1998 2:16:00 AM
From: Patrick E.McDaniel  Read Replies (1) | Respond to of 176387
 
Jim, there sure are plenty of the kind that want to drive the stock price down.

Do you think it is possible the are shorts trying to make a little money?

:o)



To: jim kelley who wrote (79575)11/13/1998 2:21:00 AM
From: hsg  Read Replies (1) | Respond to of 176387
 
Jim,

Investing in start up companies is extremely risky. The probability of success is very low, requiring diversification and high tolerance for loss. By the way, did you invest in Dell when it was a start up company? I don't know if you noticed, but I stated that I love Dell as a company, and would love the opportunity to own some if the price is right. Let me ask you a question: The share price was much lower a month or so ago. At that time was Dell more attractive than it is now?

Of course (buy low), and now that it has risen it is LESS attractive as an investment. I wish I had bought then, and if I get the opportunity I will get in.

Also, my logic was correct. A static universe? So why did Dell go down last month? Did you notice the P/E has increased? The share price has moved up faster than earings growth. Do you expect this to last forever?

The question is how much are investors willing to pay for Dell's future earings. I question how high the P/E can go, and will lay my bet's accordingly.



To: jim kelley who wrote (79575)11/13/1998 2:35:00 AM
From: michael modeme  Read Replies (1) | Respond to of 176387
 
These results are for positive values of P/E only. And as a sidepoint, I should remind you that the Nobel prize in economics was given out last year to people who developed similar models -- but then again that's only the Nobel prize, they'll give those out to just about anyone with a crazy idea.



To: jim kelley who wrote (79575)11/13/1998 2:45:00 AM
From: jim kelley  Read Replies (1) | Respond to of 176387
 
I was referring to hsg's thesis:

that one should not invest in a company with a P/E >= 81 for the previous quarters. This would rule out almost all early phase startup companies. This defeats one of the main purposes of the capital market, namely to fund new companies.

I guess this is an OK strategy for people who are risk adverse.