Hello Frank. I had cpt problems since last night and just now fixed it halfway. Anyhow, I am on my way out as soon as I have posted this.
The reason I had been concentrating on Dell yesterday is that I knew full well it would affect the markets today. Dell did pretty well, considering, but def. took the market down. I listened to M. Dell and it sounded pretty good. He stated that they are still growing something like 3 1/2 times the market average. He also said that they could probably have gone the extra mile and come in with higher revenues, which I noted yesterday. We all knew that Dell, along with some other techs, has or had a fairly high PE. I listened to that analyst, Niles, from Bank of Boston R.S., this evening. Bill Griffeth from CNBC actually asked him the question how he came to that 5.17 mill. figure, only 30,000 below his estimate. B.G. wanted to know if he had some inside warnings. He said that the signs were out there after CPQ etc. reported. He said he just did some hard research and that sometimes you are right and sometimes you are wrong. Yeah, right. Tell me another one. Anyhow, this analyst said that he was waiting a little while longer and then buy Dell. Now, just think about that. Why on earth would he buy Dell if he thought that Dell was slowing down? Just like usual, he started the ball rolling to get nervous investors out of the stock. Why bother to sell when you know that the stock will be up further down the road. Taxes will cost you more than what the stock will be down to. Stuff like this is true with most good stocks and that's why I generally hold on to the techs. I did not sell Msft because of the PE, I sold it because I am always worried when a company has a suit outstanding. But Msft has done well, so maybe Intel will do the same when their suit comes around.
Dell is splitting on March 5th and who knows, maybe it will be back up to where it is now within the year. After the split.
Those cos. that have been out of Dell and are dying to get in are trying their best to get in cheap. I think we should do the same. With that talk out there it could still go lower.
I wanted to add more to this post but I am running out of time.
Sonny |
