Thread,
Just some Saturday morning musings...
For the week
DJIA went from ~ 8600 => 8051 = - ~550
NYSE index went from 540 => 512 = - ~28
NASDAQ 100 index went from 1380 => 1265 = - ~115
And DELL ended up ~1 1/4 for the week.
In light of the general market conditions, I suspect that DELL might not have ended up for the week had it not been anticipating a split. However, it is and it did. And it was only on Friday, when many shorter-term traders were scared to hold any stocks over the weekend, that it took the big hit.
www1.bigcharts.com
In addition, DELL got a lot of good publicity during the week, because it held up so well when the general market had turned to hash. It was rare to hear a market summary or report that didn't mention DELL--and many noted it as a "safe haven". Considering the market, I think that was true.
This may well have implications for DELL's future performance. I expect some of the money to hold until split time, and then sell all or some of their holdings, as usual. Some of the 'safe-haven' money will probably sell once the market calms, in order to take advantage of the other 'bargains' out there. But I think that a fair number of newer investors will just decide to hold for the long-term. Where else can you get a return like DELL has provided (taking a conservative view, say only 25% of what it has done the past couple of years) with that kind of security against market fluctuations.
Of course, the above musings are predicated upon DELL's continued performance. If at any time DELL fails to meet earnings expectations it will still probably get punished short term.
Wish the market were open. I need more DELL.
DELLish, 3. |
