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

To: Alohal who wrote (110639)	3/22/1999 11:28:00 AM
From: Eggolas Moria	Read Replies (2) \| Respond to of 176387

Aloha1, I am somewhat troubled by the Forbes article which is reported to have said that over the past three years, DELL has earned $3.1 billion from financial engineering (selling puts and trading calls) on its own stock and only $2.5 billion in other earnings. If this story is true, it will take some time to work through the market, but it is an axiom that you don't pay operating earnings multiples for financial engineering growth. The latter is simply not high-quality recurring earnings. For example, if DELL were to have entered this quarter with essentially the same strategy that produced these earnings, what would the impact be? Moreover, on every earnings call going forward for the foreseeable future, analysts will be asking for the specifics as to how much of the earnings/losses come from financial engineering. I don't have a position in DELL, long or short, so this is simply an intellectual exercise. It may have some ramifications on other tech companies though as the heightened awareness will force the analysts to carve out the financial engineering contribution to reported earnings for the foreseeable future for a number of companies.

To: Alohal who wrote (110639)	3/22/1999 11:34:00 AM
From: Dorine Essey	Read Replies (1) \| Respond to of 176387

Aloha, I am a LONG holder of DELL. I just don't appreciate what these so called Analyst say without documentation. This news about IBM. In my opinion DELL will be next. Dorine NEW YORK--(BUSINESS WIRE)--March 22, 1998--Read the following articles exclusively at S&P Personal Wealth (http://www.personalwealth.com). Standard & Poor's is a division of the McGraw-Hill Companies: "Two Different Markets" personalwealth.com Big-capitalization stocks remain in strong demand, boosting the S&P 500, Dow Jones Industrials and Nasdaq Composite. The big-cap magnet is attracting money that would otherwise go into smaller issues. Not only are the various measures of smaller stocks lagging badly, even most of the issues in the record-high big-cap indexes are languishing. Historically, market advances as narrow as this have led to major setbacks. But according to The Outlook, S&P's investment advisory newsletter, it's no sure thing that'll happen this time around, at least not without some currently unforeseen negative "external" event. "S&P Reiterates Buy on IBM Shares" personalwealth.com Standard & Poor's reiterated its 5 STARS (buy) recommendation on shares of International Business Machines (NYSE:IBM.N). Analyst Megan Graham-Hackett notes that the stock was weak on Friday on market fears surrounding first quarter earnings per share, but says the company told her there has been no change in its guidance. She continues to see earnings per share of $7.65 for 1999 and $8.65 for 2000 and feels that the stock, trading at 20 times her estimate for 2000, is undervalued. Word on the Street brings you comments every trading day from Wall Street's top equity analysts on stocks or industries that are moving significantly. "A Hog Farmer Reflects on the Meaning of Dow 10K" personalwealth.com Like Vice President Gore, S&P Senior VP of Investment Advisory Services Jim Branscome has dabbled in porcine agriculture. And he thinks any future U.S. President who knows a thing or two about hog farming -- and its attendant markets -- could do a lot to advance the stock market. Little-known and appreciated experiences can turn out to be great teachers for those destined for high places, according to Branscome. Read more of Branscome's humorous take on the connection between livestock and life in the stock market in MarketViews. S&P Personal Wealth (www.personalwealth.com) is the award winning service created specifically for individual investors by Standard & Poor's. Investment management features include personalized portfolio recommendations; buy, sell, and hold alerts; free real-time quotes, live market commentary; and in-depth analysis and research on companies and funds from hundreds of Standard and Poor's analysts worldwide. S&P Personal Wealth, recently described as "...easily the best one-stop shopping site for investors.." by Money.com, can also be reached through leading on-line service partners such as AOL, Netscape, Lycos, Quicken / Excite, ABCNEWS.com, Hearst HomeArts, and Mindspring. --30--sw/sa* CONTACT: Standard & Poor's, A Division Of The McGraw-Hill Companies Mark Roth, 212/770-4752 KEYWORD: NEW YORK INDUSTRY KEYWORD: BANKING Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: businesswire.com