JimP, Your post seems to hit the mark...
[I'm not abreast of interpersonal conflict on this thread -- and as an investor/trader, I'm not interested.]
It's amusing that we discriminate between so-called "quality" (eg, DELL) and "hype" (eg, AMZN, YHOO), seeking to justify one stock price over another. For those with a penchant toward business models: the BUSINESS is making money by trading paper.
As with any business, the "product" is advertised (truthfully, or otherwise); supply/demand are manipulated to maintain (or enhance) profitability; marketing campaigns are rigorously tuned to affect consumer psychology. This is the nature of the equities business. And if you can sell invisible thread @$100/yd., you can darn sure sell tangible thread for inflated prices.
There is no question that DELL (as a company) participates heavily in the game. If not, why bother with sophisticated derivatives buybacks? The goal of "maximizing shareholders' equity" is real; the illusion is that the small-fry is such a shareholder. Comparatively, the often-maligned "short" gets no respect because s/he is usually another small-fry -- betting against big money (and/or momentum).
When BIG MO will no longer accentuate the positive, watch out. Until then... the price of tulips, land and surrounding houses will continue to pleasantly surprise the optimist.
Regards,
Alan |
