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


To: Jean M. Gauthier who wrote (96556)2/9/1999 8:09:00 PM
From: BGR  Respond to of 176387
 
Jean,

ZDEAH: 27 3/8 x 28 3/8. Obscene spread as usual. Oh well!

50% is a rule of the thumb, as DELL's growth is about that. Really no science behind it, just SWAG.

As for whether or not it is a good buy, suppose DELL stock is at x at expiration, then the 100's return is (using ample rounding) ((x-100)/37) and the 140's return is ((x-140)/28).

So for the 140's to be better buys, x has to be greater than 265, i.e DELL has to grow at a rate > 65%/year. Now will it - that's a call you have to make.

-BGR.