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

To: David Wang who wrote (100864)	2/16/1999 6:18:00 PM
From: James A. Shankland	Read Replies (1) \| Respond to of 176387

DELL leaked away the news to analysts. It is illegal!! DELL will be sued.... Oh, please. I suppose DELL will be sued, as there's always a suit whenever a stock drops. Let's keep a little perspective. In retrospect, the runup to 110 does seem a bit overdone -- irrational exuberance, and all that. But at 75, DELL will be back where it was way back in ... umm ... early January. You know, 6 weeks ago. If it drops to the low 60's, it will be back where it was around December 1. Maybe I'm just getting old, but that seems like just yesterday to me. Ask yourself: what fundamental news motivated the runup from 60 to 110? (Before you start telling me what a great company DELL is, ask yourself what might have made DELL almost twice as great a company in mid-February as it was in early December.) Companies that run up that fast on sheer enthusiasm often retrace pretty fast, too. All this is cold comfort, of course, for anyone who bought in over 100. Well, sometimes the bear eats you. You still own shares in a fine company, and you have to ask yourself whether those shares are overpriced today. The report wasn't all that bad, and the haircut from 110 down to 80 (or below) certainly ought to alleviate some of the concern over excess valuation. I'm comfortable with my position in DELL, and will probably add to it below 75 or so if I get the opportunity. I think those who value DELL at less than 50 or so (I think somebody on this thread suggested 30) are, in my opinion, grossly underestimating brand value in the e-commerce market, even for commodity products.