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

To: James Choi who wrote (22544)	11/23/1997 12:18:00 AM
From: Meathead	Respond to of 176387

James - we won't see any truth by Tuesday morning. The reality ot this situation is not yet understood nor has it had time to fully manifest itself. To be sure, Dell's earnings Monday will be fine, but the bigger picture will take time to play itself out. We'll have to see what happens to revenue/earnings over the next few quarters. What we might see next week is more panic. Do Japanese companies not need capital to grow their business or expand production? If healthy sources of expansion capital are drying up, how can we (the USA) expect to see a flood of cheap imports from companies who's outputs may well contract... we may see less in the way of imports, that is, after initial dumping. MEATHEAD

To: James Choi who wrote (22544)	11/23/1997 12:20:00 AM
From: James Choi	Read Replies (1) \| Respond to of 176387

One way to make money in this uncertain market is by hedging it. It is almost given that Dell will always do better than Gateway. So, divide your fund into two. Buy Dell long with one half and sell Gateway short with the other half. That way, as along as Dell does better than Gateway, you make money. In case the US market really crashes and all the stocks goes to zero, you did not make any money but did not lose any eithre. In case another wave irrational exuberance drives both of them up, as long as Dell is driven up more percentage wise, you are still ahead. But in case Gateway really shoots up and Dell goes bankrupt, then you are doomed. But what are the chances of that happening? James Choi