Re Slow movement of Dell
<<<<I personally do not think that a whole bunch of individual investors decided that Dell wasn't worth the investment. Where is the news? Any so called Analyst of import give Dell a downgrade? I don't know of any rational factor that occurred that would unite and invite a no confidence investment from a large group of diverse investors. So
probably it is not the small investor who collectively decided that Dell wasn't worth it. Why would they? >>>
IMO the news factor very important here. Brokers as always engaged in shaking the trees, getting people to trade stocks, and
especially selling IPO's at great profits.
Investors are still looking for the next Dell, making the false assumption that it will be perhaps a new stock,a low priced stock, or a great invention in the medical field, or one of the Web stocks like Aol which picks up millions of 'customers' with each deal or acquisition, or makes singular multi-bil deals like Csco or Lu.
These exciting and numerous stories are an easy sell, where smooth-talkin, tall walkin Dell just goes ambling along until one
day about every three months at earnings time, investors realize Dell is making money hand over fist and taking market share, while their other stocks are earning zilch.
The general public does not see Dell's in the Best Buy, Circuit City stores so it is much easier to picture CPQ or Hwp or IBM as the biggie box maker. It is much easier for a broker to get people to invest in things they use or know- F, C, GM,BA,BAC,LMT,BBY, DD, DIS. And Dell's expansion plans are not general knowledge except to Thread members and readers of the Austin Statesman because Dell is not
inclined to brag about it.
This may be part of the reason for Michael grin when he says they are growing at 5 times the industry rate.
This time I have not expected a great run-up to earnings as people are re-thinking investment stategies after that last Dow tanking -looking for low P/E's, more secure investments, getting in and out of bonds, etc.
The bare facts will be laid out on Nov 12 th, growth at 5 ?? times the industry rate, $6+?? mil dollar per day Web sales, new factories planned for Brazil and even possibly the US, XX % sales growth in Europe,new partnerships with Eds,Uni, Msft, and others.
That 'news' should be well-received by investors.(G)
Dell is the next Dell
On Nov 12 th its off we go.
utep.edu
Sig
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