To: Jan Crawley who wrote (88878 ) 12/28/1999 5:59:00 PM From: craig crawford Read Replies (3) | Respond to of 164684
PCLN along with many other dogs might see some buying come January. Fund managers don't want losers like PCLN, T, and CPQ on their sheets at the end of the year. Come January if they think they are due for a rebound they will be much more apt to put some money to work. Tax loss selling is winding down as well. I can't say enough about how good DELL and CPQ look. The charts look good. I like the CPQ chart even better than DELL. Not only did CPQ climb back above it's 50 and 200 DMA about a month ago (it was the first time above 200 DMA in 9 months), the 50 DMA is about to cross above the 200 DMA. That is extremely bullish and usually whenever that happens higher prices are soon to follow. It hasn't done it yet, but I expect that it will. There are other fundamental reasons why I think boxmakers like CPQ and DELL will do well. This Y2K hype scare is just about over and Win2K is on the way in Feb. I think there is a huge upgrade cycle that is going to start in 2000. Just remember, the stocks bottom and start turning upwards months before it becomes readily apparent to the public. Just look at semi's. MU/AMAT/NVLS etc. They bottomed long before you saw the great earnings they've been reporting. You have to buy these things when it's still a little bleak or uncertain. Secondly, this isn't a big deal but it can only help. I believe CPQ still owns 19% of Alta-Vista, and CMGI is planning to IPO that company soon. This hype can only help CPQ the way the palm pilot spin-off hype helped COMS. Might be good for a couple points. Unfortunately for my Jan options, I believe CPQ won't report until around Jan 26th, or 5 days after they expire. But no worry, that is long enough for a small earnings run and we will have MSFT and INTC eps. Looks like John Murphy just came on CNBC and made a very bullish technical case for DELL. He pointed out how DELL is at it's highest level in about 11 months. Well CPQ two days ago closed at it's highest level since April 9th or over 8 1/2 months. This is the same kinda action MSFT displayed a few weeks ago. It had it's 4th highest close ever, then it pulled back for 3 straight days before it exploded. I expect the same for CPQ and DELL. They just made multi-month high closes, then pulled back for a couple of days. If you don't trust my TA, TA guru Ralph "I'll make ya poorer" Acampora recently said positive things about the technicals of MSFT and CPQ. DELL had some nice buying at the close in the face of the Nasdaq reversal.