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Friday, 11/21/2014 2:43:44 PM

Friday, November 21, 2014 2:43:44 PM

Post# of 128592
Call this what you will but I see Tweed like I saw Dell when I was just a young kid. I was very into technology at a very young age and simply lacked the capital to invest in what I saw as an emerging market that would soon rule the world. I made my first investment when I was 18 years old, by then it was already the late 90's.

http://www.crossingwallstreet.com/archives/2013/02/dell-to-go-private-at-13-65.html

It’s official. Dell is going to be taken private. A group of investors led by Michael Dell will buy the entire firm for $13.65 per share. Interestingly, Microsoft will lend the buyout syndicate $2 billion for the deal.

Let’s look at some numbers: Dell’s IPO was on June 22, 1988 at $8.50. Since then, the stock has split 96-for-1 so that initial price works out to 8.85 cents per share. The buyout price is 154 times the IPO price. At one point in the late-1990s, shares of Dell split 2-for-1 three separate times in less than one year. At one point, Dell split 2-for-1 six times in just over 40 months.

Dell was actually not a screaming success as an IPO. The shares did indeed rally from the IPO price of $8.50 to a high of $12.50 by October 25, 1988 (or 13 cents adjusted for splits). But after that, Dell plunged to an all-time low of $4-5/8 by early 1990 (or 4.8 cents).

Then Dell put on one of the most remarkable runs in the history of capitalism. The shares skyrocketed to an all-time high close of $58.13 on March 22, 2000 ($59.69 intraday). During the decade of the 1990s, Dell advanced 890-fold which works out to 97% per year. Today’s buyout price is 77% below Dell’s high reached 13 years ago.



1 share adjusted for splits went from 9 cents a share (at IPO) to 59.69
That is 66,222.22 (repeating of-coarse) percent growth.

Now, I'm not expecting 66,000 percent growth but the comparison I am making is akin to the once a generation opportunity that appears in the markets to enter at the ground floor of an emerging market. All these great emerging markets like Social Media and Renewable energy are great and lucrative but not truly ground floor.

My week day handle is "EngageFactor".