To: McNabb Brothers who wrote (23384 ) 11/27/1997 11:12:00 AM From: Franco Battista Read Replies (4) | Respond to
Yes, I have his e-mail and I had wished to keep Paul's fears of holding Dell confidential but his snotty message to you made me change my mind. What it proves to me is that many of the so-called die-hard bulls on this thread have probably sold their stock or greatly reduced. Yes, they are brighter than we thought! Basically what I am understanding is that most Dell bulls are basing their investment on techno-knowledge. What they fail to see is that Dell has become more over-valued than ever before. They take it as a given that although Dell has tripled in price in the past year it is still undervalued. It would be very interesting to ask the Dellheads to give us what they feel is true market value of Dell. I bet you we would get a few who would claim several times the current price. I even read a post where one bull felt the price would be 2,000$ within 2 years! If they are true buy and hold investors they will do well, especially if they know how to hold through a bear market which I'm sure most of them have never experienced. Dell is a good company, but over-priced right now. The Dellheads take it as a personal affront that anyone would short their darling Dell. Their worship of this company is like a cult, reminds me of Apple. They praise Mickey Dell like the Apple cultists praised Steve Jobs. It is always unbelievable to me how some investors can become emotionally attached to a company. For my part I don't care if I make money being long Dell or short Dell. Right now it is far easier to make money being short Dell. Also those naked calls are paying enormous premiums right now, hard to resist easy money.
