To All:
I'm new to this thread, but have daytraded Dell for long enough to give my opinion. It's a great company, no doubt, and I even own a few Dell computers. However, based on the intra-day action I see every day on Nasdaq Level II for this stock, I believe daytraders control the daily pricing of this stock. The price action is similar to that observed in many of the internet stocks, just not as volatile. It's a game of musical chairs and the idea is not to be the last one holding. Today was a good example. Dell was up the whole day, until 3:00, when many of the daytraders decided to unload.
As long as the overall market, has a bullish bias, Dell should continue to go up, as daytraders keep ramping it up. However, once the market tanks and I believe it will shortly, Dell will go down even more so as they will no longer have an incentive to trade it. Keep in mind that Dell is up over 400% over the last year. I believe in the concept of "regression to the mean" and in the coming bear market "regression" for Dell and many others like CSCO, means more than a 50% decline from these levels.
I would be interesed in others' opinions.
Regards,
Dave Walter
P.S. Out of curiosity, I'd like to know why Dell is immune to the problems that CPQ has. |
