VENKIE, Thanks for the 2nd opinion. DELL has fought its way back to where it was about 4 months ago. It hasn't reached 'fallen angel' status yet, but its 'wall street darling' image also seems inappropriate. HWP has the Merced partnership with Intel, CPQ now has the alpha chip partnership and can fulfill the corporate high-end needs, as can IBM. DELL is left with the scraps. The time nears when DELL will suffer from its lack of R and D, its lack of technological advancement. It spent its money on it own high-priced stock, temporarilty pleasing its investors and option-holding employees. Now its stock is poised for a fall. The prospect of higher wages, a Gore presidency, and the ripple effect of lack of an ongoing slump in asia will not help. One can enjoy transient paper profits today, but today is a far better day for selling DELL or buying puts! Regarding the earnings release: Who cares? It is the future prospects that matter.
On the long side I'm still considering WDC, NSM and some other depressed semis and component makers. Will buy in the near term, just after a few down days. On the short side I'm in YHOO and considering AMZN.
Best wishes,
RJ |
