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

To: Chuzzlewit who wrote (98913)	2/13/1999 6:13:00 PM
From: Lockeon	Read Replies (1) \| Respond to of 176387

Chuzz - now I am thoroughly confused indeed.... From what I can see, Dell's stock price appreciation has been WAY beyond it's earnings growth rate for OVER 4 YEARS.... Now what on earth am I supposed to make of all this???? Not that I feel that it can continue or anything - not with it's PE at 85+ (given its 1998 est. of 1.05), but if your concern about Price appreciation vs. earnings growth was completely valid then these last 4 years have been a speculative bubble... or do you feel that at these high valuations Dell's price increase is a speculative bubble? (BTW I do agree that at some point price increase has to be inline with earnings growth - and maybe this is the time for it to start happening). Please clarify.... TIA... With respect... Have a GRAND evening...

To: Chuzzlewit who wrote (98913)	2/13/1999 7:49:00 PM
From: Jon Stept	Respond to of 176387

Chuzzlewit- re:"providing valuation figures..." Thank you for responding to my post. All high growth tech companies share the characteristic you mention. 2X, 4X earnings... it is not logical. Cisco has quadrupled since May 97. They are ripe too if I look at it the same way you are. And the stock price would have gotten hit just like Dell's did if an analyst came out with news like Niles did on Friday, but it was about Cisco. So, the stock did not tank because of it's valuations, although it is tempting to link the fall to it's high price valuations because that is the reason everyone expects it to fall. "Oh, they'll come back to earth." "Oh, this can't continue." Well, it's been like this for years and years and years. And as long as the there is so much money in the market and the economy is smokin and interest rates are down, and technology drives the economy, money will continue to poor in and demand for these stocks will continue pushing up those multiples. The reason it fell is because of Niles. People got scared. And, as a side note, the way RobertStephens handled it is utterly tasteless. They make an announcement and then shut the door. No forum. No way to follow-up. It just reinforces my happiness at not having to go through brokers at those places, the disdain I have for their lack of professionalism and my belief that the the net and what it represents is diametrically opposed to the sensibilities this company showed on Friday. And they, in the long run they will lose. It's already happening. Their brokers are the first to go. Next, the closed nature of IPOs. Their industry is getting remade and they did not even see it coming. The net has obviated the need for their brokers, and their analysts. Their little club is disintegrating, and they are trying to hang on. So, they get desperate and resort to the tactics shown on Friday. All just my opinion. Jon :)