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Strategies & Market Trends : Value Investing

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To: Shane M who wrote (47952)	5/15/2012 2:07:10 AM
From: Shane M	Read Replies (2) of 78673

Opened a position in DELL today @15.52. Not alot of deep thought on this one other than - downside seems limited (alot of metrics seem very low to me) - it feels like the market is getting a little oversold, - Microsoft earnings were good which could feed into Dell (admittedly conflicting signals out there though) - buzz around ultrabooks is a positive - I think it should trade for at least $17/18, and could easily reach $20+ or more based on eps estimates and getting back to a more historical 10x multiple (currently it's at 8.2 multiple). The combination of limited downside vs. potential upside, along w/ what seems to me high % chances of PE expansion to a more historical level of at least 10x within 6-12mo seems a good bet. This is a trade for me. Earnings coming up on May22 - so might wait until after earnings for more clarity. A question I can't answer for myself is why am I buying Dell but still can't pull the trigger to get back into Apple?

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