More from Yahoo on Barron's:
Page 3:
"The cracks on the technology sector are starting to be quite visible. On Friday, for example, DELL tumbled 12 points. The excuse was that some rather vague reservations voiced by a couple of analysts, the gist of which is that DELL faces competition. What a revelation!"
Page F6:
"The best companies are seriously competitive outfits getting a lift from deep-seated changes in the economy and consumer behaviour - secular changes, in Wall Street-speak. That's why own INTC and not AMD, that's why I own DELL not CPQ".
Page MW3:
"Niles left his 4th quarter estimate unchanged at 31 cents, but his concerns about intensified competitive pressure in the personal-computer market jolted DELL's stock."
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Last night I went for dinner with a friend who manages an account of $125,000,000 at one of the large brokerage firms, and he told me that they loaded up on DELL at the close, at $90. They believe that a lot of the news from Friday was misleading, somewhat false, and the street exagerately over reacted. He told me that what those "analysts" did was perfectly legal since it's very difficult to prove that it was stock manipulation; however, he also said that when stuff like that happens, the SEC always investigates to see if they themselves sold before the announcement or bought after the drop. That relates very much to "insider trading" and can be considered stock manipulation.
Analysts get more info. and before everyone else does, because they get to see the books at the company ahead of earnings. Yes, it's an unfair advantage but there's nothing we can do about it.
I bought the Feb. 90 puts at $4 on Friday about an hour before the close. I will sell those puts on a daily dip and defenitely before the close. Tuesday will be an extremely volatile day like no other, specially for DELL. Day traders will be playing it, large institutions will be playing it, I'll be playing it. My prediction is that we'll see the heaviest volume on DELL's history.
The article from page MW3 on Barron's says at the end "The DELL drama should resume Tuesday when the company is due to report it's quarterly results".
Anyway, happy trading and GO DELL
BUM |
