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

To: BGR who wrote (96571)	2/9/1999 9:06:00 PM
From: OLDTRADER	Read Replies (2) \| Respond to of 176387

I believe DELL will rise into the earnings after the market on Tuesday.That its pretty close to finishing its correction at 98.

To: BGR who wrote (96571)	2/9/1999 9:18:00 PM
From: Hector	Read Replies (1) \| Respond to of 176387

BGR, My method is rather simple. It's called "reversion to the mean". If a stock's historical P/E has averaged 30 and now it's at 110, then it seems to me that I would be taking undue risk investing in this stock at a time when the overall market's P/E is at an all time high. Everything going forward must be perfect both in the market and the stock otherwise the downside risk is much greater than any upside from here. I expect Dell's P/E to revert to its historical average. Either, that means serious downside in a bear market or no price appreciation for the next few years, even though the company may be growing in leaps and bounds. BTW, I daytrade Dell and over the last few days it hasn't had the relative strength it had just recently and I take this to mean that the institutions have gotten the word that the numbers are not going to be perfect. They're taking their profits. Regards, Dave