Robbie,
I was encouraged today by how well Dell came back from 77 7/16ths to close up 7/16ths. The street seems to have lost sight of the fact dell will be splitting again, how much effect this has remains to be seen.
Compaq's weak action has me genuinely worried. Does this reflect a significant slowdown in 1999 of the PC market. If so, this bodes poorly for all PC stocks.
There is no question in my mind that January was very weak, and this poor month was reflected in Dell's Q-4 number, unlike Compaq with its Dec. 31 year end. If in fact, the PC market will pick up going forward, then we may soon find the worst news is out of Dell's stock. On the other hand, Compaq may still suffer a little further from the contrast between a great Q-4, and an uneventful Q-1.
Regardless, Compaq may soon be a compelling buy and I intend to be there when it does.
Gene |
