Amein, lets see if I can answer your questions:
<< What is ASP ? >>
ASP is the Average Selling Price of a product or, possibility, a group of products.
<<Also, I am somewhat baffled, if everyone is expecting DELL to announce a split with earnings which will make the share price go higher, why the worry about todays drop which is basically profit taking...?>>
Dell is expected to announce a Stock Split, not an earnings split. If they announce a 2:1 stock split, you'll get 2 shares of stock for every share you own. For example, if you have 100 shares, you'll get another 100 shares from Dell, thereby owing 200 shares. The price of the stock will be cut in half. This keeps everything equal.
Today's drop is stock price is attributed to one, or a combination, of the following:
1) Dell's CFO Tom Meredith announced at a conference that Dell's ASP's would should a decline quarter over quarter.
2) Alan Greenspan said that we should not expect a decrease in interest rates. Some of the people on Wall Street were hoping for a cut in interest rates.
3) The market was looking for a reason to correct after its recent run-up. Greenspan gave them the reason. So, profit were taken.
Stock Bull |
