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

To: K. M. Strickler who wrote (41324)	5/11/1998 1:17:00 PM
From: Jim Patterson	Read Replies (1) \| Respond to of 176387

re: $500M is 'chump change' to DELL. That is equal to about 1/2 after tax income. 12 billion in sales and just under 1 billion in income. I don't want to quibble on this, but I think Chump Change might be a bit of an exaggeration. RE: As for the 'mortgage' approach, I wrestle with that all of the time, For an individual with Assets, it is a different situation than it is for an individual with out assets. You may be able to pay off your mortgage today and still have money left over for the markets. For those that have no assets, except for 25% equity in their home, and the only reason why they have 25% instead of 5% is because their home has recently been reappraise. In the reappraisals, the home has appreciated be 20-30% over the last 5 years. A young couple buys a $100,000 home with $5,000 down. The mortgage is $96,000. After 5 years they still owe $93,000 but the house is now worth $135,000. Sell 20% = $108,000 - $93,000= $15,000 available for a Home Equity loan. This couple has very little excess cash, 2-3 months expenses for a rainy day. $3,000 in revolving high interest debt. As you can see, the situation is very different for this couple than it is for You or I. An error of case of bad timing could be catastrophic for our couple, For others, just a bad day. >As for investment policies, any investment advisor will >recommend that a person be 'diversified' into several areas. >IMHO, this is Done so that if the market 'crunches' and for >some reason the 'investor' decides that 'his advisor' is at >fault for 'putting him' into only one stock, and therefore is >'responsible', decided to 'sue' his advisor. In a 'court', the >'advisor' is liable to 'loose' big time! But for the 'investor' >making his own decisions, if they find a stock that has some >'pretty good' performance, both now and historically, they >can 'bet it all' because you can't 'sue' yourself! This is always a great topic for debate. Having been at a large retail house for many years, I have heard of investment advisors / Financial Consultants loosing or settling cases for the most unreasonable circumstances. Some were guilty, Some lost merle because the client lost their money and the Arb panel felt sorry for them. >If I were an investor, depending on an 'advisor' and with the >current exposure that DELL is getting, I would ask my advisor if >they had me in DELL. If the answer was 'affirmative', regardless of >the size of the position, I would feel that at least my advisor was >performing 'due diligence' No Money runner is going to get fired for buying more DELL. Regardless as to what happens right now. In the future, If the Co, pre announces or something goes wrong etc.., some money runners will be looked at as fools for being "suckered in" or "not being able to see the obvious." This is how time will perform dynamic changes of perception. But for now, the status quo stands. Re: If the answer was in the 'negative', I would question them specifically, and then question 'myself' about my selection of the 'advisor'! JMHO If the advisor were doing a good job of meeting your preset goals, Would you still question his actions? There are some advisors out there whose careers have been made based on this one stock. If or rather when the stock looses its luster, so will their careers. A few lucky ones will find another DELL to replace their lost leader. Many won't. Jim