To: Silicon Master who wrote (33014 ) 3/8/1998 3:05:00 PM From: William C. Spaulding Read Replies (3) | Respond to
Keep in mind folks, that the stock market is usually up at the beginning of the month because of end-of-prior-month contributions to funds from corporate pension investments. After the corporate flow drops off for the rest of the month, stock prices tend to follow. This is independent of any news, obviously. Also, even without the Compaq warning, the computer stocks usually drop sometime in March. (Just look at past years.) Long-term investors don't have anything to worry about, of course, but just a warning for people on margin. Also, buying Dell at these high p/e's is very risky. You might also expect a sales drop as people wait for the arrival of Windows 98 (like I am). Anyway, if you want to invest, I would wait until mid-April to buy, or maybe even the 3rd week of March when stock prices will probably drop. They'll go back up at the beginning of April, but then probably drop again as investors wait for actual earnings rather than depending on speculation. By looking at the past, you'll see that this is a pretty consistent trend, also.
