Are you short DELL? If so, hopefully it is from 100 or better. If you are joking, the answer is no, I'm not afraid to short DELL. I have done so before profitably, though not recently.
Basically I short for three reasons. First is based on recommendations from computer models, and I currently have no model for DELL. Second is for fundamental reasons, which is the reason I just shorted SMOD quite successfully, and am considering a RMBS short. The third is based on market fundamentals, as a hedge against my portfolio. This last reason is the reason for my last short of DELL in October of 1997 when I shorted it from pre-split 100 to 80.
Yes, DELL is terribly overvalued. But it is also likely to stay that way, at least for now. I believe I have enough shorts in place to hedge my portfolio, so I'm not looking for others. At this point all I am after is that if PROG goes down, then I am short something else that also goes down. DELL would probably work as well as CPQ, but I already made my choice.
Good luck,
Carl |
