Perspectives...
The common stock is up from $79 3/8 on January 12th. That is a 76% move since that time based on yesterday's close of $139 7/8.
Curious. Why did you select that particular data, and not something like: "The common stock is up from $103 in mid-September. That is nearly a 37% move based on yesterday's close of $139 7/8. For a company growing revenues at nearly 80% that is about right for a 6-month time frame."
wsrn.com
For DELL to go higher and higher alot of events must stay "under control" because DELL will no longer be trading off that earnings report released last week. That report is just about played out.
And you may be correct. For the interim. DELL will have another earnings report in 3 months. And then in another 3 months. It may well slow down or dip before then. I hope it does, because I want more, and more cheaply. You may not think DELL will increase earnings next quarter. I do.
Additionally, one could argue that if disk drive and DRAM supplys come back into "check" and prices move up, DELL would suffer--just as they have benefited from the "downturn" in pricing over the last 3-4 quarters.
Since you are hypothesizing that the DRAM supply might come back into balance, driving prices up and negatively impacting DELL, could you provide a logic
a) why that would specifically hurt DELL and not the other producers as a group;
b) why DELL's quicker reaction time to price fluctuations would not provide them an advantage over the others in choosing to adjust prices or margin.
When a person shorts, he/she is just saying "this is a good time for me to sell DELL". Nothing more nothing less.
As longs, our perspective tends toward the sentiment that there is no <good time> to sell DELL. As a trader, obviously, you make your money on short term movements. I suspect you are right, that DELL may dip somewhat during the latter part of this month. But it doesn't worry me.
Just a few perspectives...
DELLish, 3. |
