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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: stock bull who wrote (56283)8/5/1998 1:05:00 PM
From: jbn3  Read Replies (1) of 176387
 
Re Price Reductions

Stock Bull, you wrote,

Patrick, why would Dell release news of price reductions at a time like this??? (I know you can't answer this question.) The "market" doesn't like news of price reductions, regardless of the reasons. So, Dell's stock is not participating in the small rally that we are seeing today. Dumb move on Dell's part.

Consider this: DELL's first obligation is to make money and increase earnings. (I know that on this thread, we sometimes seem to view their paramount duty as keeping the stock price up for us) If they do that well -- make money and increase earnings -- the stock price will take care of itself, especially in the long term. Therefore, I am guessing that DELL announced reduced prices because they can take advantage of reduced component prices (INTC for instance) and to make sure that their consumers know that now is an even better time to buy a DELL. This is one way in which they can gain market share. The timing would appear to be coincidental with the back-to-school buying period: who knows whether that is calculated or fortuitous marketing.

So just hold long. It is good news for DELL, even if the market doesn't appreciate it yet.

DELLish, 3.

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