Beware the next Dell:
Dell is the best of the breed here. But its important not to expect it to be "the next Dell"
siliconinvestor.com
These multicap stocks, with Msft having over 10 bil shares outstanding, are being traded out the wazzoo,
the three old grey haired guys in a New Jersey basement who run the market from behind the scenes are fully aware that people do not forget the good old days, that they will keep trying to get back on board the old gravy trains. Meanwhile incoming money is being absorbed by fees on the huge number of daily trades so there is no surplus left to raise the stock price.
These stocks can go up but only if the underlying markets go up but the world economy does not indicate that much is going to happen.
The churning seems to occur perhaps 5 or 6 times per year, and will continue as that is the modern way for brokers and funds to make money and has worked so well for them.
John Koligman is the best leader here in ideas on ways to handle Dell profitably, and the channels on the noted stocks willl probably hold for a while yet.
Meanwhile I am holding Dell Leaps of 20 and 30 strikes, a Leap of faith in the company
But I have gone on to other stocks as being "the next Dells", with that old time momentum.
Some of these are worthy of having their own threads, but they are not widely held so its not possible to gather
enough enthusiasts without forcing the matter, exaggerating, and feeling responsibility in case they tank.
I have been trading consistently for over 6 years with gradual improvement and its been tough go. Some brokers
had a discussion last week, discussing how long an active inexperienced trader could last in the market and the conclusion was one year. One year and they would have all your money.
The Dell story is fascinating, entertaining, record breaking ( who would believe that a 35 to 40 Bil sales company could grow at 35% a year) hehehehe. Its like creating a new company each year, having $10 billion in sales.
Many would be happy to own a company with $1mm sales per year. Dell can create 10,000 of those each year.
I wonder what Michael's dad would have said, if he had said "Pop, I want to try selling computers, and some day I will be creating the equivalent of 10,000 new companies every year with each having sales of over $1mm"
"Son listen to me, I want you to tell me seriously whether they gave you those drug tests at school and whether you cheated on them"
.I have to stop here or I will begin to sound like Kemble.
Maybe buy a few more Leaps or something
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