Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: TigerPaw who wrote (86127)	12/20/1998 4:24:00 PM
From: jbn3	Read Replies (2) \| Respond to of 176387

re Covered Calls TigerPaw, DELL DEC 70s expired worthless. DELL DEC 65s made ~$3.00 (sold at 6+ could have covered at 3 on Friday. Other positions still open. COMS CSCO DELL RMBS expire in JAN. As far as DELL behaving like the "old days", I do not expect that to happen. I assume you are talking of the past 3-4 years. 4 years ago DELL was relatively unknown, sparsely followed, carried a P/E of < 20, and was considered a second tier computer maker in some circles. Since that time, DELL has established itself as the premier model in JIT BTO manufacturing, and is considered the epitome of efficiency throughout the industry. Consequently, it now justifiably carries a significantly higher P/E than its contemporaries, and should continue to do so until such time as it fails to deliver such stellar performance. IMO DELL now carries a valuation reasonably consistent with its earnings, revenue, and cash flow growth. Chuzzlewit has devoted a lot of time, thought and logic to analyzing the problem of valuation, giving emphasis to cash flow as a valuation metric, I believe. Therefore: Do I belive that DELL's share price will continue to increment at over 100% per year? NO Do I believe DELL is still a good/great investment? YES Would I be satisfied with 50%, or even 30% per year? YOU BETCHA. However, if you choose a different metric, such as AMZN P/E and earnings growth, then DELL might be greatly undervalued. NOTE: I currently hold positions based on my belief that the market price of both AMZN and DELL will fall or remain flat short-term. But I am still very bullish on DELL long-term. DELLish, 3