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

To: zalesky who wrote (130647)	6/3/1999 2:34:00 AM
From: James A. Shankland	Read Replies (2) \| Respond to of 176387

It's what the street is EXPECTING not what DELL has been delivering lately. And at $33 per share, the street is clearly expecting much less of DELL than they were when the stock was at $55. Which lowers the bar considerably: DELL is no longer priced for perfection. Look, I'm not a DELL fanatic; I had serious concerns about DELL's valuation at 45+. I picked up DELL by choosing to accept assignment on a couple of short straddle option plays. Adjusted for the option proceeds, my net cost for DELL is half at around 40, and half at just over 35. Below 40, it looks pretty good to me. Sure, I agree that if DELL misses expectations next quarter, it will go a bit lower. But I think it's relatively unlikely. The company has a track record of masterly execution and steadily increasing profits. Yes, margins will come under pressure and profit growth will slow, but I see that as already priced into the stock (and more) at this point. How do you feel about AOL, which has also used skillful marketing to sell a commodity product subject to increasingly fierce competition. It earned $.09/share last quarter to DELL's $.16; it's trading at $110.