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

To: kemble s. matter who wrote (130188)	6/1/1999 8:49:00 PM
From: Chuzzlewit	Respond to of 176387

Kemble, as you are probably well aware, I am very suspicious of stocks whose valuation is based entirely on the internet. Why anybody would pay more than $3 a share for AMZN eludes me. I come from the old school -- valuation is based on such things as free cash flow and earnings and growth in earnings. So your question depends on several things. First, it ought to be clear that Dell's business model of "virtual integration" is entirely consistent with heavy use of the internet for Dell's core business (computers). Use of the internet in this context drives down the cost of doing business compared to traditional telephonic communications. But if the thrust of your question concerns Gigabuys.com, I am not nearly so sanguine. Certainly, these kinds of sales are an adjunct to computer sales, but I don't believe the margins are particularly attractive. I believe that Dell's primary growth engine will be in the enterprise arena, and that the internet will continue to be a major driver in that setting. Sorry that I couldn't give you anything that was more definitive. TTFN, CTC

To: kemble s. matter who wrote (130188)	6/1/1999 11:02:00 PM
From: stock bull	Read Replies (2) \| Respond to of 176387

Hi Kemble, re:<< Would you or anyone else care to help me out with a possible case scenario....What if DELL was doing $75 million per day on the internet by let's say Jan. 1st 2001?? IYO.... What PE might this command? And, would you care to estimate what the earnings are if the quotes from the DELL management of % on the internet by 2001 are accurate?>> you can't look at it this way. You need to ask the same old questions...growth rates, margins, profits, market share, etc, etc. The amount sold, by itself, is really meaningless. Can Dell continue to make "decent" margins and profits as the pc prices continue to fall? Servers and storage prices will fall as well...its all a matter of time. This is what they call a "whores" market. Markets like China are great, but you can see how quickly relationships can change...these changes may affect markets. I suspect the day of easy and quick price climbs may be over for some time to come. Maybe forever. Stock Bull