Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: stockman_scott who wrote (104079)	2/23/1999 10:02:00 AM
From: JRI	Respond to of 176387

Your comment: <I expect Dell will appreciate well over 150% in the next year> While I would love to see you be correct, I would urge you to scale down your expectations for the company...A return of 30-50% (in line or a little below revenue/earnings growth) appears to be a much more reasonable target, and would represent a great one-year return..... As Chuzz often points out, PE expansion simply can not take place forever (implying Dell is undervalued)...It is clear that Dell's growth is slowing some (to a rate of mid-40's), but the latest 38% (revenue only) was an anomoly, imo....and it is unlikely that we will ever see consistent growth rates again in the 50's for both revenue and earnings.....As TM likes to say, "The law of greater numbers"... I a bit worried that if one goes into this year expecting 150% (or more), you will not only not get what you want, BUT you may make some additional bad decisions along the way which could hurt your overall return... BTW- You are talking about a straight long position here, no?. I do wish you luck. I would love to be wrong here.