SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Art of Investing
PICK 51.54+0.1%Dec 24 4:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: xiaxia who wrote (302)11/18/1998 12:29:00 PM
From: Sun Tzu  Read Replies (2) of 10713
 
I agree that shorting stocks like DELL and MSFT is playing with fire and you have to be very carefull. Then again, I've always had a streak of pyromania in me. DELL is a short candidate because it is one of the top 5 most widely held stocks in the market (and that means that almost everyone who wanted to be in DELL is there already) *and* because it is very very richly valued *and* because it has stopped performing. None of the elements here are grounds to short a stock, but the combination of the three means that there is a lot of DELL to be sold, if this underperformance continues. The thing about super richly priced stocks is that in order to maintain their rich valuations, they'd better perform very well. The moment they start to perform "average" is the time to get out of them.

Microsoft is another story. Not only it is obsurdly valued, IMO, it stands a good chance of losing its court battles which in turn will bring to an end their monopoly power. As someone who's been in the computer industry since '85, I can assure you that Microsoft cannot make an outstanding application if their life depended on it. At least this is my opinion and I am not going to start a techno-war here by debating whether Microsoft is benign or evil. Based on this opinion, I see MSFT as another Standard Oil.

Of course Rome was not built in a day, nor did it vanish in a day. The same will be true for above.

Sun Tzu
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News