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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: jim kelley who wrote (53462)	3/25/1999 5:50:00 PM
From: Eggolas Moria	Respond to of 132070

<<For the relatively unsophisticated, P/E is what determines whether or not they get a good buy. For the more sophisticated, PEG is a more important factor in determining good buy in a stock. For the really sophisticated investor, the determining factor in a purchase is the three to five year discounted cash flow and profit of the company.>> Here I thought the Will Rogers model was the pre-eminent one for today's market. At least his methodology has stood the test of time.

To: jim kelley who wrote (53462)	3/25/1999 5:52:00 PM
From: Michael Bakunin	Respond to of 132070

..so what are the inputs for your DCF model on Dell? I threw some optimistic inputs at the stock recently, and got a fair value of around 20. Yours?

To: jim kelley who wrote (53462)	3/25/1999 6:49:00 PM
From: Broken_Clock	Read Replies (3) \| Respond to of 132070

jim... every picture tells a story don't it? decisionpoint.com

To: jim kelley who wrote (53462)	3/25/1999 6:53:00 PM
From: Knighty Tin	Read Replies (3) \| Respond to of 132070

Jim, Greenspan does not use a discounted cash model. He uses a simplistic comparison of stocks to Treasuries, which is total nonsense. One of many reasons why his handling of the credit market has been so horrible. Using any CAPM you like, it is impossible to see Dell's current price as fairly valued. With growth slowing, quality of earnings totally insane, and no more new put warrants to scam the eps, there is no there there at this co. Just a failed religion. MB