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: jim kelley who wrote (150348)	1/5/2000 1:41:00 PM
From: rudedog	Respond to of 176387

Jim - I take it your hedging your bets this time by betting on both companies.... I have been betting on both CPQ and DELL for a while now, increasingly for different reasons. DELL continues to be a great vehicle for selling covered calls, and the recent action in CPQ made that a great play for buying calls. I suspect you are doing better on your SUNW puts than I am on the calls at the moment, but that is a small hedge for me. The whole play with SUNW revolves around perception of SUNW as a leader in internet architecture. As I have pointed out several times, from a business perspective SUNW is currently just OK, with less growth and less net profit on a percentage basis than companies with much less valuation (for example CPQ's enterprise group, which is 50% larger than all of SUNW, and generates 12 points net profit as opposed to SUNW's 8% net). But as long as investors believe in the future value of SUNW's internet mindshare, its valuation is independent of fundamentals. Good luck with your SUNW option plays, you're ahead of me on that one for now...