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

To: TigerPaw who wrote (79885)	11/13/1998 10:26:00 PM
From: Moominoid	Read Replies (1) \| Respond to of 176387

I don't understand your calculations. If a company's earnings grow at a constant 50% a year then the P/E should remain constant (assuming the price is reasonable at the start) and the stockprice should rise at 50% a year. You need a tremendous acceleration in growth to justify a 200% rate of increase in the stockprice. The increase is compounded. I'm guess the stock to grow in the 200% rate this year Actually DELL is likely to be overpriced now and to face slowing though still impressive growth. Therefore 50% would be an upper limit on the growth in the stockprice. Of course such considerations don't stop the likes of YHOO so maybe not DELL either <g> David