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

To: Lee who wrote (86747)	12/23/1998 1:31:00 PM
From: Venkie	Read Replies (2) \| Respond to of 176388

I am purely gambling as w speak..I am buying nets that I dont have a clue about..making good money though ..so for..I own 1 called mzon..suppose to be next ubid..we will see.. i luv Dell

To: Lee who wrote (86747)	12/23/1998 1:57:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176388

Happy holidays Lee, The problem with these people is that they talk valuation but don't understand it. To put it very simply, value is in the eye of the beholder. Real estate and ketchup are both valued on the same basis: what a willing buyer and willing seller agree to. But throw a capital asset in the mix, like stocks, and all of a sudden these guys start looking at things like book value and P/E. I am convinced that the key to valuation is the reasonable assessment of future cash flows. I am also convinced that we are on the leading edge of a major industrial revolution which will result in the replacement of the much of the specialty retail segment with electronic commerce. The beneficiaries are going to be companies like Dell, CSCO, ASND and TLAB, which provide equipment to shoppers roughly analogous to the car, and companies like AOL which are roughly analogous to the shopping mall. The electronic stores that will emerge will replace many existing physical stores. So why is this exciting from a business point of view? Because, aside from the requirement to reinvent the infrastructure with electronic networks (which means lots of business for the equipment manufacturers like CSCO) there is the ultimate driving force of increasing productivity by reducing manpower requirements, and the reduction of capital required to carry on e-commerce. This adds up to huge increases in cash flow for those companies well positioned to take advantage of the new industrial revolution. So now, tell me about valuations? Those who are stuck in the mode of examining balance sheets to try to figure out value will never get it. They are like the Rebels who continued to hoard Confederate money following the Civil War -- convinced the South would rise again. They just didn't get it -- the war is over. TTFN, CTC