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Technology Stocks : Dell Technologies Inc.
DELL 122.55+4.4%Nov 21 9:30 AM EST

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To: Jim Patterson who wrote (39550)4/29/1998 3:47:00 PM
From: Chuzzlewit  Read Replies (1) of 176387
 
Actually, Jim if your hunches were based on market risk you'd be okay. According to WSRN.com Dell's beta is 2.29 while Compaq's is 1.20. This means that on an upward move DELL ought to move 91% higher than CPQ, and 91% lower on a downward move. So if CPQ moved up 50% Dell should move up 95%. If CPQ moved down 30% , DELL would be expected to drop by 57%. But in order for those scenarios to take place, we would need to see the broad market expand by almost 42% or contract by around 25%. Of course I don't see the broad market making those kinds of major moves in the near future.

It is more likely that these stocks will move significantly in response to company specific business issues.

TTFN,
CTC
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