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Technology Stocks : Dell Technologies Inc.
DELL 120.60+1.8%Jan 9 9:30 AM EST

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To: Jazz102 who wrote (9115)6/26/1997 10:42:00 PM
From: Patrick E.McDaniel   of 176387
 
"How do you decide if strength is coming back into a stock? How do you tell the difference between a temporary downturn and a long lasting downturn?"

I have time to watch the market closely and in real time. By watching CNBC, the financial news headlines and the market reaction to news I feel an investor can get a good sense as to the severity of a stock market dip.

By following an individual stock very closely such as Dell you get a sense as to what the individual stock will do given a set of market conditions.

Combine all of this and I feel an individual can beat the market as they over react to news and underestimate a rebound.

In Dells case I create a model for the next earnings report. Then make adjustments thru the quarter as news of sales and margins come in. The hard part is picking a P/E to use for a fair value at earnings estimate.

All this takes a ton of time but its my job now.

Pat
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