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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: dennis michael patterson who wrote (19447)	2/17/1999 9:18:00 AM
From: Lee Lichterman III	Read Replies (2) \| Respond to of 42787

Be careful with DELL. Who knows anymore. I was telling one of the guys in my KEA group how it would be if DELL experienced what we did last summer. KEA earns more than DELL, has more growth than DELL etc yet the perception that Y2K would cause a slowdown stripped it from a PE of over 60 to 25 now. Luckily we got out and stopped dipping after the fist couple burns. My support lines are in this area but those lines assume that the market will perceive DELL as a still fast growing company. If they get valued as I believe they should be, they wouldn't see 66 again for a loooong time. Heck I see companies growing at their rate selling at PE ratios of 15-30. Why should they deserve a PE of 100? Especially when they admit that their next 2 quarters will only see single digit growth. They will bounce, that is obvious from the cult following they have but the bounces should be small and short lived especially when the rest of the market starts to pull back later in the month. PS - Pre trading is accelerating the sell off. DELL was 76-77 1/2 a while ago and is now down below 75. S&P march contract just fell to 1232 after holding 1234 range most of the night and morning. Lee