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


To: jmac who wrote (138315)8/3/1999 4:43:00 AM
From: William C. Spaulding  Read Replies (1) | Respond to of 176387
 
You're right, it is the 17th. I was thinking wrong! Not the first time, I assure you:-) I haven't been keeping up with things, since I have so many things to do. However, I still wouldn't buy the 40 calls. I'd buy the 45. At 3/8 to 5/8, your risk would be less. And to be frank, Dell's price may still slide, because stocks generally decline toward the end of August, and Dell, like most stocks, tends to follow the market. This is not to say that Dell won't rise a bit in the meantime, but are you going to know when to sell?

Also, consider this. Dell is expected to make .17 a share, according to Zack's, this quarter. Last year at this time, they made .13 a share. That means that Dell's trailing yearly EPS will rise by a mere .04. Even if you multiplied that by a 100 p/e--far more than what it is now!--that would only boost the stock price by $4!

Dell might blow the estimates away, but I doubt it. They have good steady growth, but the larger they get, the slower they'll grow in general, which is why Dell hasn't been blowing away estimates as it has in the past.

I would say don't invest anything that you're not willing to lose. You might make something, but it probably won't be much, and you could easily lose your entire investment.

I could be wrong. I have been many times. But that is my opinion.