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

To: Hector who wrote (96635)	2/10/1999 12:39:00 AM
From: Chuzzlewit	Read Replies (3) \| Respond to of 176387

David, Dell has two major growth areas targeted: servers and mass storage. I am certain that the executives at Dell have additional things on the drawing boards. Dell's BTO model is just too good for these guys to just sit on their hands and watch the thing simply spiral down to industry average growth. So my bet is that we're still looking at 50% growth over the next several years, which ought to translate into a more rational 40%-50% per annum price appreciation (not bad by anybody's reckoning). Valuation is a really tough issue. For example, if you look at the oils or the oil service industry based on history they are dirt cheap right now. But there is a reason for this. Oil is dirt cheap and doesn't show any prospect of recovering soon. Much of the world is in a recession or depression, and the third world depends on raw materials and commodities like oil and lumber for cash. But since the market is limited by global economics they respond by increasing their oil output which just pushes the price further down. What happens when Iraq finally starts pumping oil? CPQ is struggling to straighten its distribution system out. I don't know how well they are assimilating the Digital acquisition -- time will tell. But Mason is far from trustworthy. Companies like MO also look cheap, but the risks from tobacco litigation are enormous. Besides, there is the moral issue (at least for me) in investing in a company whose product can cause death and serious disease. If you're looking for a really undervalued growth company take a peek at BMCS, and if you have the stomach for it, look at NETA. Like Kemble says, don't bet against Dell! TTFN, CTC