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

To: stockman_scott who wrote (98480)	2/12/1999 10:14:00 PM
From: Buster O. Hype	Read Replies (1) \| Respond to of 176387

THE LAW OF BIG NUMBERS have to eventually catch up to a great company like Dell. Its just impossible to sustain 50% revenue growth once you're near the $20 Billion annual sales level. Dell has a price to sales ratio of 8 against the industry standard of 2. By the time Dell doubles in revenue, the market will have given it a multiple of 3-4. Since it pretty much have been in the 8% profit margin, then simple math says the price wouldn't be much then from where it is now. But the market is a discounting mechanism, it wouldn't wait for the obvious. Dell's multiple simply just have to contract.