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

To: jim kelley who wrote (79584)	11/13/1998 2:40:00 AM
From: hsg	Read Replies (1) \| Respond to of 176387

Yes, I understand. But projecting earnings too far into the future and discounting future cash flows contains risk also. Geez, I am not debating the fundamental principles of valuation, I am just saying that to ME, 81x TRAILING earnings seems high, no matter what the future prospects are. Everyone who sells a share or a call to you feels this also, and everyone who buys a call or a share has an opposing view (generally). In the end, it is my belief that everything reverts to fundamentals. Castles fall out of the sky and gems are uncovered deep in the earth. Where Dell fits is anyone's guess. So, where will it open tomorrow? Good luck and goodnight.

To: jim kelley who wrote (79584)	11/13/1998 10:57:00 AM
From: Fangorn	Read Replies (1) \| Respond to of 176387

Jim, re >The formula for DELL price has not been based on its past earnings but has been based on its future earnings. Based on that formula DELL's price should be about $ 70 per share at this time.< When I first got the numbers yesterday I did a simple calculation. [EPS times 4 (to get a per annum number)] times EPS growth rate (65%) [.28 * 4 = 1.12] * 65 = 72.5 Looks to me like the stock price prior to the report did an excellent job of predicting what the EPS growth rate was going to be. I expect to see that price again soon, if not today then next week. re >"official" whisper number...What a crock. No such animal.