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To: Lockeon who wrote (98918)	2/13/1999 6:07:00 PM
From: Chuzzlewit	Respond to of 176387

Lockeon, he is actually using CNPEG (Chuzzlewit's Normalized PEG) in which you divide the YPEG of the stock (as you have correctly calculated) with the YPEG of the S&P500 (last I calculated it it was around 2.9). I have been toying with the notion of using this number multiplied by the beta as a metric. I call that metric CNPEG2 TTFN, CTC

To: Lockeon who wrote (98918)	2/13/1999 6:20:00 PM
From: BGR	Read Replies (1) \| Respond to of 176387

Lockeon, I had a discussion with CTC on this issue; he used the 30-35% number for the 5-year EG rate which I feel is an underestimate. I am instead going by the oft-quoted estimate that in 4-5 years DELL will to have about 25% market share. The market is growing at 17% (approx.) and DELL has 9% market share (approx.) today. This means that DELL has to grow revenue approximately 45%/year. For the past few years DELL has grown revenues at 50% (approx.) and earnings at 65% (approx.) on the average. From that, my estimate for DELL's forward EG is about 55-60%. Hence the discrepancy. My assumptions, of course, could be completely wrong. -BGR.