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Technology Stocks : Dell Technologies Inc.
DELL 133.180.0%12:59 PM EST

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To: Jean M. Gauthier who wrote (91733)1/27/1999 11:48:00 AM
From: Sig  Read Replies (2) of 176387
 
Jean: Re Dell leap
IMO You can't pay too much for a Dell leap as the small amount one overpaid for it vanishes after you hold it:
A couple examples:
ZDEAJ Bgt 6-26-98 cost 16.56 now 50.75 (actual cost=~$33, but you now have two of them)
ZDEAL bgt 9-01-98 cost 18.81 now 45.25( ditto)
So does it really matter if you paid a few $ more for them???
What is the gain on leap vs buying stock?
6-26-98 Dell= 92 3/8 Today= $180 =+~95% ( It split in Sept)
9-1-98 Dell = 108 Today=180=+~66% Ditto
ZDEAJ +~ 213%
ZDEAL +~ 150%
So the return on the leaps can provide 2 or 3 times the return
on a stock investment if Dell continues on up.
As others have noted, using margin on Dell stock would reduce this advantage, but margin can also be used on Leaps at some brokers. Regards
Sig
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