Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Bazmataz who wrote (139131)	8/13/1999 2:17:00 PM
From: jttmab	Read Replies (2) \| Respond to of 176387

Seems to me that DELL is pretty much in line with the rest of the sector. HP is a little higher...now GTW is being mildly thrashed considering the strength in techs! Will there be buying or selling into the close? Toss a coin. <g> Kind of interesting trading in DELL today though. Volume in the market and DELL is on the low side..not surprising for a Friday in August; but the average trade size for DELL is usually around 950 but today the average trade size approached 1200. Morning trading shown on I-watch indicated a large portion of the trading to be non-I-watch. The morning I-watch data showed a dominance of sell interest, but certainly no significant selling occurred. "Declared" institutional trading is about 60% of volume. Intraday dips on DELL are met with some buying to send it back up to a very narrow trading range. With the NAZ coming off a low and crossing to the upside of the 13 and 50 EMA, if you twisted my arm and forced me to bet....I would bet that their will be buying into the close. But the market is always right. As an aside, I was reading a TA thread on the NAZ. Pretty much dominated by near term shorts. Their view of "life" is that today is a head fake; they found nothing worthy of good news in the PPI data; volume is low; earnings season is over, etc.. There is always enough data (and interpretation of data) to see what one wants to see. Yet the future is (stealing from AG) opaque. One example: DELL has two-thirds of the RDRAM supply locked up for 4Q99 and 1Q00 as I recall; destined to go into high end workstations and servers. A notably high margin market of DELL interest. Intel says that only 4% of the servers exist for the growth through 2005. Pretty good growth opportunity I would say. My guess is that DELL is expecting their hold on RDRAM will enable them to capture additional accounts and market share for these higher margin boxes. Will Camino be further delayed? Will there be a buyers demand for RDRAM and how strong will it be? Most would agree that there hasn't been a run in share value into DELL earnings. I would contend that this is more problematic for shorts than it is for longs. The indication is that the expectations for DELL are not set high. A penny surprise on the high side (with a cooperative CPI announcement) could result in something similar to what CISCO just saw. So we could easily see a 3-4 point pop to the high side. I don't claim that DELL will surprise to the upside, just that the market is favorable now for an upside surprise. Best Regards, Jim