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

To: freeus who wrote (34160)	3/12/1998 6:17:00 PM
From: Bilow	Read Replies (1) \| Respond to of 176387

I noticed that DELL is trading at a very high multiple of its book value. Is there some sort of hidden asset off the company books? And why are they borrowing $500B when they have so much cash in the bank already? Are they getting ready to make an acquisition? Acquisitions are usually bad news to the purchasing companies stock price, as it always has to purchase the other company at a premium. But I can't see why else DELL would be borrowing money. NSM announced bad earnings, (decrease year to year with declining margins). Should be good for DELL, as another supplier will be reduced to selling parts at distress prices! By the way, one of the useful things about buying stocks in an account with only one stock and at maximum margin is that if you make a mistake, the margin calls are a wake-up call that indicates that you bought at the wrong time. For a trader, the worst thing to have happen is to become a dreamer. Margin calls will wake you out of your dream, so you can learn from your mistake, and move your money on to something more profitable. To lose touch with reality is the most common downfall of the stock speculator. In day trading they call it going into "prayer-mode". :) In my opinion, long term buy and hold types probably should not use margin, but short term speculators should use it to the maximum, unless they are wealthy enough that their positions challenge the liquidity of the markets they trade in. (I.e. Warren Buffet already moves the market too much. There are plenty of non-DELL stocks that have small enough liquidity that a little guy like me can easily account for most of the shares traded in a day, for instance, MRIA) In either case, remember the trading rule: "Keep your losses small and let your profits run." -- Carl