As I see it, despite all the bears saying that DELL has lost it's momentum - growth status, and is dead money going forward, we could actually see some very strong support here, and probably a fairly rapid climb to the low to mid forties. Besides any actual news, my reasoning is as follows:
DELL has now dropped approximately 30% fairly rapidly. As such, as long as it performs at least up to expectations going forward, it should be viewed as a bit of a value play, or a hedge against a Nasdaq melt down, seeing as it would probably sink less from here than those still flying high.
At the same time, it still definitely qualifies as a growth stock (30% growth is enough for such a qualification in my book, anyway), and an Internet play.
So, you've got a hybrid that ends up being a bit of a defensive/aggressive play. With many investors getting very worried about the nose-bleed valuations on the Nasdaq, but at the same time being petrified of being left behind on the technology train, DELL may be just the ticket. |
