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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: jim kelley who wrote (47911)	2/13/1999 8:48:00 AM
From: Richie	Respond to of 97611

Jim, Dell's expectations are so HIGH......and CPQ's are so low because of the last 18 months. If Dell makes the consensus earnings estimates, and I believe they will, but fall short in the revenues, it's the expectations that change, not the fundamentals of the company. DELL is a great company regardless of what happens Tuesday. This stock is in the stratosphere, it may outperform the rest of the sector for a long time yet, but you have to admit, that a PE of nearly 80 is really high, not talking about internet stocks. The multiple that the street has assigned today was for something like 50% growth year to year, and as DELL gets bigger, the chance of that happening is slim. This might actually be good for DELL....get the expectations lower, more reasonable, and this will help the whole sector in general. As for EP's comments, well, obviously CPQ views DELL as the main competition. If he did nothing, he would be criticized for doing nothing, if he says something, then he is criticized for being unprofessional, a no win situation. Seriously, I look forward to your analysis of the DELL 10K. RichieH