larry....don't feel it is anywhere near the time to bail out of dell..
my concerns are not with the internal operation of the company, for imho to date it is impeccable. i question what appears to be an attitude of isolation by dell....i don't think any company can remain in the vacuum that it has manufactured. this is a new dell in the sense of perception. as i earlier stated, msd book comments about competitors weakness/strength have been thrown back in his face by gerstner and platt and pfeiffer...they have created a "perception" that the pc is dead, a commodity, loss leader, etc.....dell has proven otherwise with its balance sheet.....the "perception" has been validated by the market, and dell left alone to "defend" their unbelievable performance............i believe a corporation(and i think msd stated same in his book) should never be on the "defensive"....why not go on the offensive, take the show on the road like gerstner and platt, talk about other than core business and the present moment,give the market something to dream about, and with an inflated stock price, make the dream come true!!!!
in the meantime i think dell will range trade as i have been stating in a 36-44 range...+/- from an established 40 norm...with no news, volume will lessen, and movement will be with the market or drifting...i'm considering selling one third of my dell stock,and using deep in the money calls, 0122.5??, as a stock replacement...this to me is a defensive but yet still bullish stance...not for a trade, but for the ability to take advantage of any unusual downward move, which may or may not occur...ditm call will give me same upside....good luck, ed a. |
