				Ken Deen's
			 THE AGGRESSIVE TRADER(tm)
	    "Seeking double-digit profits in one to four months"

			        BUY ALERT
                                                           1339 Virginia Rd.
Vol. 1, No. 86                                           Montecito, CA 93108
September 18, 1992                                            (805) 565-2039
11:40am EDT                                           CompuServe: 72020,2050


   Stock+Options Account:  No trades

   Stock-Only Account:  No trades

   DESI Trading System(tm):  No trades

   Other Trading Ideas (these recommendations will not be tracked):
      Recommended for purchase:  Dell Computer Corp. (DELL, $28.25)

   The DESI-3(tm) timing indicator has been RED lately:
	9/15/92 GREEN	9/17/92 RED  
	9/16/92 RED	9/18/92 RED  


Recommended for purchase:  Dell Computer Corp.

   Dell stock was hit hard in early June, as can be seen from the chart.  This
happened when Compaq announced its new low-cost line of PC's, putting it in
direct competition with Dell.  IBM is also expected to introduce a new low-cost
line of PC's very soon.
   However, price wars are nothing new in the PC industry, and Dell has a
remarkable way of surviving them.  The market is acknowledging this, and the
stock has fully recovered.  Yesterday, the stock closed at 28 1/4, a new all-
time high, the first all-time high since May.  This represents a technical
breakout.  The stock had previously reached, then retreated from, the 27-28
level three times -- in March, April, and May of this year.  The stock may
or may not pull back this time as well, but I expect any such pullback to
be relatively brief -- less than six weeks.
   The company's earnings and sales growth are so incredibly strong, and its
P/E multiple so low, that it would be undervalued even if its growth does slow
down.  To illustrate the point, let's look at sales and earnings growth for
the last four quarters.  Percentages reflect comparisons with the respective
year-ago quarters:

	Quarter
	Ended	Sales($Mil)	Earnings
	-----	-----------	--------
	Oct 31	229.3  +68%	$0.35 +52%
	Jan 31	285.7  +71%	$0.41 +46%
	Apr 30	366.1 +109%	$0.52 +73%
	Jul 31	457.5 +129%	$0.57 +68%

   Notice in particular how sales have been accelerating into the triple-digit
range.  The P/E, at 15, is far far below what one would expect for a company
growing so fast.  A great deal of growth slowdown is thus already factored
into the low stock price.
   Competition has been heating up for years in the low-cost PC business, and
Dell has managed to grow like gangbusters in spite of it.  Can they continue
to thrive in the face of competition from IBM and Compaq?  I suspect so.  The
next earnings report is due out Nov. 21.

      <Printed version contains stock chart here.
       Contact Ken Deen to obtain a copy.>
----------------------------------------------------------------------------
   The Aggressive Trader  is edited and published at irregular intervals, but
at least monthly, by Kenneth L. Deen ("Ken Deen"),  P.O. Box 4791., Santa
Barbara, California 93140, (805) 565-2039.  Until further notice, it is being
distributed at no charge. 
   Ken Deen, his employees, affiliates, and/or clients may have positions in
securities recommended herein and may make additional purchases and/or sales
in these securities.  
   Recommendations made in this publication involve a high degree of risk and
may result in losses.  Readers should not assume that recommendations will be
profitable or will equal past performance.  The information in this
publication is collected from sources believed to be reliable, but neither the
accuracy nor the completeness of this information is guaranteed.  
   Reproduction in whole or in part without the written consent of the editor
is strictly prohibited.  The Aggressive Trader, Deen Earnings Surprise Index,
DESI, DESI-3, and DESI Trading System are all trademarks of Kenneth L. Deen.
Copyright (c) 1992 Kenneth L. Deen. 
			      -END-
