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

To: BGR who wrote (109330)	3/15/1999 1:34:00 PM
From: Michael Bakunin	Respond to of 176387

Bukun, Indeed, the only way to settle this argument definitively is to be patient. I can wait. I hope you are right, as new-era productivity gains would improve my lot, too. at the present growth rate the technology sector will become 50% of the US economy is 15-20 years or so People need food, clothing, and shelter to survive. Given leisure, they enjoy a variety of activities. Technology will certainly play a part, but 50%? I don't see it. if margins are squeezed at the same time that should mean a phenomenal increase in consumption which I posit is not likely That sounds like I wrote it. I agree wholeheartedly. I suspect that AMD and CYRIX will drop out of the low-end CPU business soon That's the last thing I expect. AMD, NSM, IDT, and others will make every sale they can to defray high fixed costs. Only bankruptcy would shutter this production. unusual pricing pressure of the last two years (wrt the more traditional micro-processor deflation I propose the mpc industry is maturing. Sans monopoly, the industry will not again see "traditional" margins, deflation, or profits. Check out Intel's old stronghold of DRAM for an object lesson. my money is on DELL based on past management performance. I think EPS growth of 20% for five years in an increasingly tough market reflects a good deal of respect for Mr. Dell. DELL is also diversifying it's product line. This seems an admission that current businesses alone cannot satisfy expectations. I see it as a negative indicator. the discount rate of 6.5%, that may actually be too high That may be true for treasuries. I would use an equity premium that reflects business risk for Dell. mb