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

To: jhg_in_kc who wrote (91933)	1/27/1999 6:38:00 PM
From: Chuzzlewit	Read Replies (3) \| Respond to of 176387

Tread carefully, kitten. Valuation is a minefield, and more than one investor has lost his gluteal musculature (and cajones) making such arguments! There are some on this thread (myself included) who believe that DELL's growth has been so spectacular to date that it may not be sustainable over any reasonable period of time. I am especially concerned with companies like AOL in this respect. Look at it this way: assume that AOL has 15 MM subscribers, with earnings of around $.17 per share and a stock price of around $165. Now let's assume that the maximum potential subscriber base is 100MM, and if achieved earnings would be proportional. On that basis earnings would be $3.73 per share, and AOL would be trading on a forward-looking P/E of 44.2x. That seems to me to be a pretty lofty number. That's why I repeatedly ask the question what sources of incremental growth exist? I have asked the same question of Dell, and now we know that two areas have been targeted: mass storage and servers. But I believe that more will be required. Full fledged pussycats like to make sure that their footings are firm. Rash felines require fire trucks to rescue them from precipitous decisions. TTFN, CTC

To: jhg_in_kc who wrote (91933)	1/27/1999 6:59:00 PM
From: Sig	Respond to of 176387

<<<AOL is my second biggest holding, after DELL.<gg>>> ----AOL Profits Up 367 Percent---2/1 split Having a good day, are we? LOL SES