Donnie, I agree to an extent. Trimming DELL is not a mistake as some would suggest. (I'm looking forward to all of the bears saying that finally I agree with them, and all of the bulls saying I've sold-out.) I think that there is immense upside potential for DELL, and I remain long with 66% of my long term stock holdings (from all-time high in September) intact. I also have large options positions in January 2000 and 2001. This is superior company with bright prospects.
However, as I have been saying, DELL is trading at too high a multiple on trailing earnings (some will say that doesn't matter). Regardless of what we believe a fair value for DELL to be, we are a unique (small) group who understands the bigger picture at DELL, and we are in the minority of those who invest in this stock (most of whom have no concept for valuation of this company, other than it's stock price relative to the market).
DELL will resume it's rise once the momentum players move out of the stratospherically over-valued internet stocks with BS for earnings (or earnings potential relative to their current stock price), and back to those companies with real businesses with real earnings growth, like DELL.
I remain bullish on long on DELL, and at the same time, I am moving some of my DELL $$$$ into other investments (it is possible to do both, you know).
Regards and Best Investing,
LONGonDELL
P.S. Up 1000% on ONSL since Monday, and holding! Gotta love the hype of the internet! I'll be out soon!
BTW, my last bit of advice to our readers...Never, ever, short DELL. Sell, but don't short. You'll regret it if you do... |
