<<Can someone convince me that with the current sub 1000 PC price war, that one should hold on to the DELL that he purchased in the 40's?>>
In uncertain times, people want certainty. It just doesn't happen that way.
You have to inspect your holdings and determine within your time frame how the company should perform. Then you can decide how the stock will perform.
The shorter your time frame, the more difficult the analysis.
I can't tell you whether or not to hold onto your DELL stock and in truth, no one here will feel your pain if it goes down or your happiness if it goes up. What you can get from this board, as difficult as it is sometimes, is an idea of how the company's prospects and challenges are perceived.
The rest is up to you. It's your decision.
My own belief, FWIW, is that DELL will be entering the sub-1000 area "in force" (Carl Everett's statement) as a means of going after more consumer and small business sales. Will their direct model succeed in this area or will they adjust it a bit, say by using kiosks at a retailer with a direct internet connection and giving the retailer a piece of the transaction (no, I have no idea if they intend to do such a thing). Or will they find another creative way to penetrate a market where first-time buyers tend to have incomes under $50,000 and small businesses have different requirements from large companies? My bet is that they adjust their model. Successfully or not, we will see.
Then there is the question of valuation. We could write tomes on that subject and not come to complete agreement. Of course, that is what makes markets.
As for shorting a volatile tech stock, I hope you know what you would be doing (and I hope that you have done it before so you know what it is like). I've seen pros short this puppy and cower as soon as it looks like its about to break out, then watch the headfake as it goes down . . . or not sell and watch it climb. Quite frankly, if you have to ask for an opinion on that subject . . .
Good luck.
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