Larry, regarding the sale of Dell shares prior to next earnings announcement. I have given this matter some more thought. I have concluded the following:
1) Dell exceeded the last earnings estimate by 2 cents, and the stock corrected around 18 to 20%. Then, as we know, the stock went up like a rocket.
2) The buying or selling of stock is normally accompanied by a degree of risk/reward.
3) Given (2), I have concluded that the sale of the stock prior to the next earnings announcement carries a greater risk than reward. That is, if Dell misses the whisper number, and corrects by 20% again, then takes off...one is likely to miss time the event and lose some money. Timing the market, or stock purchase is always a risky business.
4) Having reviewed the comments that Michael Dell and his executive staff made at yesterdays shareholder meeting, I must conclude that things are going quite well for the company. If not, I doubt that Michael Dell would have been so positive for the company's future. With the next earnings announcement only a few weeks away, I believe that they would have been more conservative in their comments if they knew of a problem that would affect the earnings report.
5) So, unless something develops between now and the earnings release date, I'm going to hold the stock.
Appreciate your thoughts.
Stock Bull
PS: I also believe that a 2:1 stock split will be announced along with the earnings report. The timing of this split makes sense to me. Also, at the current stock's price, I think its a given that the stock will split. |
