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Technology Stocks : Dell Technologies Inc.
DELL 113.22+1.9%3:59 PM EST

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To: curious who wrote (23201)11/25/1997 6:01:00 PM
From: Franco Battista  Read Replies (2) of 176387
 
Curious, Dell's good report is not enough to stop whoeveris selling from continuing to sell. This stock is undergoing massive distribution by the smart money. It is no mystery that selling is done on the way down. The trick is to drive the price up to nose-bleed levels before commencing distribution. Dell's great report means that whoever is selling is getting very good money for all his shares today. They will continue selling at these levels until they run out of buyers who are willing to pay these prices. Then they will continue to unload at a lower price and so forth. The price will continue to drop until all the unloading is done with. How long this will take, no one really knows. In the meantime, Mickey Dell and the analysts will do everything he can to keep the price from eroding too much. Great press releases, upgrades, reiterated buy ratings, etc. In spite of all this Dell's share price will continue to erode until the sellers have completed their dumping. You see, the big market players have decided that at the current price Dell's rosy future is fully priced in. They also are becoming fearful of a slow-down in growth. They know that this type of growth is unsustainable. At the current share price it will take approx. 2 more years at the current growth for Dell's p+e to equal that of Intel, which has also recently experienced incredible profit growth. They are not going to sit with this stock and take that bet!
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