John
Let's say that some want Dell to $17 only to drag it back to $27 on the hint of recovery. They do not literally believe that the PC model is inherently weak although they consistently imply such things on TV. Can "they" do this? "They" can only perform their deeds if (a) the world market continues is a poorly viewed state and (b) small and varied institutional shareholders give them the opportunity.
Since the intermediate expectations of this supposed finger bang job on Dell's stock price are so well known and publicized, the market makers don't want to reveal their altnernate intermediate bloody hand for now. Dell could also step and buy, building to $22 before any teens (they've still got those puts to protect for now, you know).
Despite all the general market losses, there remains more money in money market funds in any time in U.S. history. But, since Dell is part of several well known index funds, the market makers have limited control
The bottom line is yes because MDell, this time around, will most likely give a time table of recovery on any official release of bad news.
Dell is not CPQ nor GTW. It doesn't suffer from all their same diseases. At the first hint of worldwide market recovery, many believe that Dell has antidotes ready and waiting for a stock price recovery as well.
These supposed stock price actions do not represent my own thinking, but those of another. But, because he good at what he does, I tend to listen. |
