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: Chuzzlewit who wrote (31510)	2/28/1998 10:26:00 PM
From: CRICKET	Respond to of 176387

Paul, The real translation of his remarks is DAMN! I MISSED OUT ON THE DELL TRAIN, AND I'M PI33ED. Cricket

To: Chuzzlewit who wrote (31510)	2/28/1998 11:01:00 PM
From: Jeff Mills	Read Replies (1) \| Respond to of 176387

Paul-- <<For every buyer there is a seller, so the number of buyers equals the number of sellers. So if a stock is "overbought" then it is also "oversold".>> Good point, but DELL in this case probably cannot be termed oversold. Maybe overshorted (for the obvious reasons of the viscious covering), which in essence is a form of oversold I suppose. Here is my thinking. Suppose one bought DELL on Friday say at $139. Depending on what broker that person used, the order was routed to a Nasdaq Market Maker. This could have been Merill, Goldman Sachs, Schwab, Lehman, or any number of what must be 45+ brokers making a market in DELL (I would be interested to know from anyone who has Level 2 Nasdaq how many firms make a market in DELL?). Let's say your order got routed to Goldman. You are buying, GSCO (Goldman Sachs) is selling DELL, right? Now, chances are Goldman is selling DELL shares out of inventory that he/she bought only days before in the low $130s since that was where DELL was. Not a bad turn. Also, wouldn't it also be possible that Goldman is selling you shares which he is possibly shorting, perhaps looking to cover at a lower price? And if he is short, and say DELL ignites (like it has been daily) wouldnt Goldman join the buying frenzy in order to get covered. Not to mention all the general public buying. In essence, when you buy DELL, the market maker is either closing out a long position or going short, no? If you have ever had the chance to watch a Level 2 Nasdaq screen it is pretty amazing (I used to frequently trade, but no longer do so). The dynamics of the Nasdaq market are much deeper than what most people really know about. It is a good market, but much different than NYSE, or true auction. It seems to me it is more of a battle between longs and Market makers and shorts and Market makers, rather than a battle of shorts vs. longs. After all, the marketmakers are who we buy and sell to. Sorry to ramble on, JM

To: Chuzzlewit who wrote (31510)	3/1/1998 7:59:00 AM
From: Phillip Crone	Respond to of 176387

Paul, if I could answer your questions. Are stocks really like Beanie Babies, the price is what people are willing to pay for them?? Yes and no. If you look at historical norms, then what time period to we look for. If you just use the past 5 years then one might say that Dell is not over valued relative to their other high flying friends. If we use 100 year averages then I think you know what my answer would be. Is Dell right now, today , 1998, investing or speculating? The answer could depend on what one's time frame is. If you time frame is short term then maybe Dell is not overvalued because in this "new era" world the markets are supporting high values for companies. I would argue that if you investment horizon is 5 or more years that maybe Dell is extremely over valued. Timing is everything in life and in stock trading. WE can all be right sometimes. I am looking for staying with my short in Dell no longer than 6 months or 160 bucks a share, pre split. Maybe I will be right, or wrong. It is very hard to determine. I just thought that John Elway told us all the answer.