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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Jill who wrote (132562)	6/13/1999 10:00:00 AM
From: Meathead	Respond to of 176387

Jill, you are right. Different stock classes now have different margin requirements and the higher requirements for these internet stocks do help protect the market. As for the margin to the hilt mentality, this in large part I believe was responsible for driving Dell to $55 too soon and down to $31 as the margin calls accelerated. The short siders also add fuel to the fire in both directions. Fair value IMO is between $40-$45 right now. I don't think margin traders have been burned badly enough to sober up yet. A major market correction however would ruin a lot of small time traders. In the short term, this wouldn't be good for anyone, and, it still wouldn't be a panacea for returning rationality to the market over the long term. Gambling is an illness, losing doesn't cure it, people have short memories and there will always be a new crop of gamblers waiting in the wings to follow when the bull market returns. MEATHEAD