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

To: stock bull who wrote (94615)	2/4/1999 1:47:00 AM
From: Joe Pirate	Respond to of 176387

DELL soars... Still time left before earnings due. $115 - $120 next week !! Muhwahahahaa <Evil Laff> Pirate

To: stock bull who wrote (94615)	2/4/1999 4:26:00 PM
From: Chuzzlewit	Read Replies (4) \| Respond to of 176387

Stock bull, I am an enthusiastic believer in buy and hold. It outperforms a trading strategy hands down! But, I am becoming increasingly concerned with the price of Dell. The price of the shares have spurted by better than 50% in just about a month. Sure, there is every indication that earnings will be much better than expected, BUT it is clear to me that the stock is now a momentum investors plaything. As I indicated a couple of weeks ago I sold (a bit too early I suppose) Feb 95 calls. Last summer the stock hit a high of $73 at a around earnings time. If a stock is properly priced it should appreciate at roughly the same rate as earnings grow. Two things ought to be clear: 1. Since the high set last summer Dell is appreciating at the rate of around 127% per annum. 2. Long term growth is expected to slow. Analysts are estimating the five year growth rate to slow to 30% (I think that is an underestimate -- 45% seems more reasonable to me). Eventually Dell's growth must slow to the same rate as overall market growth. So, while I am wildly bullish on the company, it seems to me that the stock price is way ahead of itself. TTFN, CTC