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

To: Mohan Marette who wrote (81424)	11/19/1998 9:40:00 PM
From: exhon2004	Read Replies (2) \| Respond to of 176387

Mohan: Intel sold out of chips? Message 6487083 Where the heck are they all going? Think a recalcitrant cpq gets preference over loyal dell? This is going to be one interesting quarter. Best Regards, Greg Gimelli

To: Mohan Marette who wrote (81424)	11/20/1998 6:04:00 AM
From: D. Swiss	Read Replies (3) \| Respond to of 176387

Mohan, thanks for the post. Here is some interesting information that shows that the computer industry, in general (according to Zacks), has about the same PE as DEll, but has 50% less growth potential over the next 5 years. Would you think Dell should command a multiple that is double the industry if you consider they will grow only twice the rate of the industry over the next five years. This data also indicates Dell has a PEG ratio of 1.65 (ratio of current fiscal '99 PE divided by next five year's growth rate) versus 15.75 for the S&P 500. If Dell's earnings are anticipated to grow, conservatively,at more than 4x the stocks in tyhe S&P 500, should it be trading at more than 4x the PE of the S&P or 84-90 versus 50 that it is? Data as of 9/30/98 P/E P/E Projected PEG 98e 99e 5 years DELL 50 38 30% 1.65 DS DELL EST 48 34 40% 1.2 Industry 48.5 21.8% 2.17 S&P 500 25.2 7.2% 15.75 :o) Drew