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

To: Venkie who wrote (94189)	2/2/1999 6:27:00 PM
From: Venkie	Read Replies (2) \| Respond to of 176387

What does that mean was for Chuzzie..ouppppps

To: Venkie who wrote (94189)	2/2/1999 6:48:00 PM
From: BGR	Read Replies (1) \| Respond to of 176387

Venkie, I think the analysts numbers that CTC used were underestimating DELL's earnings growth. With a higher earnings growth, DELL's forward price to eanings ratio (PE) will go down and the PE/earnings growth ratio (PEG) will go further down. Then the CNPEG2 measure by which CTC compares an individual company's PEG to the S&P's PEG adjusted for beta (i.e. the stock's riskiness) will be much lower than his calculated 0.95 (1 being fair value) and DELL would be considered to be a very attractive buy. Using a forward earnings growth rate of 65% I get a CNPEG2 of 0.35, which means that by that measure DELL has to triple in price to be fairly valued. -Apratim.