William,
Hi!!!
Hey.....it's wonderful getting back.....Wrestling season is killing me...being 50 and keeping up with these 18 hr. Saturdays...traveling on Sunday upstate to watch daughter at NYState XCountry Championships....back home for Tuesday....out till 11pm last night catching up on some renovations for the school project we are putting together...traveling for practices since it's the end of the season.... many are scrimmaging together...I've really been out of it so to speak....but, found a ton of messages awaiting me...
THIS ONE REALLY CAUGHT MY ATTENTION ...Scott Stockman sent it to me...
Best, Kemble
o: Sbvc1
FORBES
March 8, 1999
Page 53
DELL Computers spectacular rise from a split-adjusted $8 a share to $88 in the past two years has made more than a few millionaires, or "Dellionaires," as they are sometimes called. Besides founder Michael Dell, whose 14% state is worth $16.7 billion, it's hard to say just how many Dellionaires there are. But one of the biggest is La Jolla, Calif. stockbroker William B. Michaels.
Michaels, 67, says he turned a $2.75 million stake into $49 million worth of Dell stock over the past two years by using options, leverage, and a lot of guts.
"If you want to arrest me for portfolio concentration, come and get me," says the Oklahoma native, an unrepentant practitioner of the win-big, lose-big school of investing. Michaels and his wife control some 550,000 Dell shares purchased with a staggering $20 million in margin debt.
Michaels admits the bet looks foolhardy to some. Even brokerage executives have tried to talk him into selling. But like a lot of Dell fanatics, Michaels believes the PC maker has only begun to grow and will increase sales 45% to $26 billion this year.
"You don't look at price/earnings multiples," he says. "You look at what the future income stream is going to be. Then you take everything you've got, leverage it up your you-know-what, mortgage your dog, your wife, your house, put it all in Dell stock and sit down and relax." |
