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Technology Stocks : DELL Bear Thread
DELL 133.92-4.9%Nov 13 3:59 PM EST
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To: Ally who wrote (194)3/17/1998 9:11:00 AM
From: jjs_ynot  Read Replies (2) of 2578
 
Denise,

Looking at GTW, DELL was recently analyzed by one of the big investment houses (GS I think) as number two on the list of public companies in terms of EVA (Earned Value Analysis) which is Return on Capital minus Cost of Capital and this was a big deal to DELL longs. Noteworthy, but not mentioned was that GTW was number 9 on that list. One has to think that GTW may have the BTO model up and running after a rocky start several years ago that the stock is still being punished for. At stock price at less that 1 times sales (utility co. type multiple) versus 6+ times sales (high flier type number) for DELL it looks quite compelling.

Regarding stock price action yesterday, it seems DELL is in the grips of the option traders through Friday. There are over 100,000 calls open for prices of 65 and above and a like number of open puts for prices of 62.5 and below. This equals 10,000,000 shares of stock on each side. The pressure is HUGE to keep the stock between those two levels to have all those options expire worthless. Unless there is a BIG breaking news story, it seems almost impossible that DELL can break out of that range this week. I was showing DELL as short term oversold technically and expecting a pop but option pressure is way too great to allow that IMO.

dave
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