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

To: Michael Bakunin who wrote (116741)	4/12/1999 4:15:00 PM
From: TechMkt	Read Replies (1) \| Respond to of 176387

This is actually "good" news for DELL. Reaffirms what MD said at the analysts meeting, and contradicts CPQ's claims of an industry problem. Fez ________________________ Monday April 12, 3:38 pm Eastern Time Company Press Release HP PC Business On Plan PALO ALTO, Calif.--(BUSINESS WIRE)--April 12, 1999-- Hewlett-Packard Company today said that it has been able to achieve its stated goal of growing its PC-business revenue while also building profitability. HP made this statement in response to questions raised by competitors' recent experiences in the PC marketplace. ''We are not seeing the weakness some of our competitors are reporting,'' said Duane E. Zitzner, president and chief executive officer of HP Computing Products, which spans palmtop to commercial PCs and PC servers. ''We have delivered growth that is on plan and profits that are above plan. Our results since the middle of last year to this point in the quarter validate our direction in all our large regional markets of the world.'' In the last year, HP has been focusing on building a solid balance between market-share growth and profitability, while expanding the ways customers can buy HP products. Customers today buy electronically via HP Shopping Village (www.shopping.hp.com), as well as through retail and commercial distribution channels. HP's second quarter will end April 30, and the company will announce quarterly results on May 17 after the market closes.

To: Michael Bakunin who wrote (116741)	4/12/1999 4:35:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Thank you for your response why trailing earnings instead of forecasts? I do use forecasts. What I should have said is the forward looking P/E. Interestingly, I had slice 10% off of the S&P's prospective P/E based on my big toe. I don't use peer groups because I think they may be too restrictive, and overly reflective of market sentiment in a narrow sector. Let me backtrack a bit so that you can understand what I am trying to accomplish. If the market prices securities on the basis of perceived future free cash flows and risk-adjusted interest rates, it's possible to calculate the value of an investment, but it is anything but easy. It's easy to use measures like PEG, but they suffer from one huge defect: They are insensitive to general market conditions and risk. By normalizing on the S&P we at least get rid of interest rate components. That leaves the risk, and there is no good way I know of to normalize on risk. Beta is appealing, but there is mounting evidence that it may be useless. Any ideas are welcome. I disagree on this point: negative/breakeven earnings will not distort the index P/E if you calculate it properly, i.e. as if the whole index were one security representing complete ownership of each constituent company. Companies that are losing money are often trading on the basis of the value of their assets rather than the perception of future cash streams. I want to eliminate those kind of effects. TTFN, CTC