FWIW, last 5/30/97 when INTC preannounced before the opening, DELL dropped from 110 (5/29 close)to a low of 100 before recovering to close at 114, almost it's previous high on 5/29 of 115. But, as I pointed out in my previous post, this INTC warning is much worse -- (1) INTC Q1 earnings will be off 25%, (2) no warning -- last year INTC, DELL, CPQ et al all shed 5 points in the two days prior to 5/30, so the news had leaked out already -- this year it seems completely unexpected (except for Kurlack of ML and a few others), (3) Intel is blaming the bad Q on "weak OEM demand", (4) CPQ won't say anything.
While it's somewhat reassuring to know that DELL gave the analysts an upbeat briefing today, that's not going to assuage the panicking hordes in the morning, and neither is the upbeat close in DELL today. What will be needed is Michael Dell on CNBC Squawk Box telling everyone that DELL is having a great Q1 despite INTC's woes.
Good luck.
David T. |
