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

To: Almost Blue who wrote (42224)	5/15/1998 5:09:00 AM
From: Lee Martin	Read Replies (2) \| Respond to of 176387

Hi Daniel, You don't see me post much on SI anymore because I just don't have the time. However, my answer to your question is "UP". I've been in and out of DELL for the last couple of years and of course I've kicked myself every time I got out because I listened to some clueless analyst's opinion that the stock was overvalued, competition from CPQ etc. etc. All of the bugaboo's that were supposed to take down DELL simply have not materialized. So I said to myself "by God when this thing breaks out above 70 I'm jumping in with both feet and I'm not selling until I see some hard evidence that the fundamental's are deteriorating." So I did at 75 and change. The fundamentals are now better than ever and this will be confirmed Tues. after the close. I suspect .47+, revenue growth of 50%+, gains in market share (causing problems for HWP,CPQ,IBM etc.), slight increase in margins (component price drops from Asia have immediate positive impact due to high inventory turns), increased stock buy back(they have tons of cash, might as well use it to buy back stock), and maybe even a 2:1 split announcement according to a few on this thread. What I would like to know is exactly how many shares are still shorted? If I'm right, when all this good news hits Wed. especially after warning from HWP (I can't believe so many folks were surprised by the warning. They warn/miss EVERY Q. So what's new about it this time?), what are the shorts going to do? IMHO they will cover. When the analysts digest the good news above what are they going to do? IMHO they will increase estimates going forward and upgrade DELL. All of the sudden DELL won't look overvalued anymore! What does short covering and analyst upgrades mean for a stock? You got it, more upside. The big picture that the shorts don't get is that DELL is the low cost producer of PC's period. The efficiencies that have allowed DELL to do this are not easy to duplicate. Also DELL has outstanding customer service. The business clients that DELL caters to simply go to their own website designed for them by DELL and with a couple of clicks, they've got a new PC headed their way. After buying a DELL PC online they go over to their online broker to buy some more DELL stock! One last thought: Have you seen the runup in any and all stocks connected with the word internet? I assume all the hype is due to the hopes that one day these stocks will turn a profit by selling something over the internet. DELL is doing $5M+/day right now, with the goal of doing 100% of sales over the net sometime in the future! If someone can find a co. making more $$ off the net I'd like to know. (CSCO maybe?) So what if the market awarded DELL just a fraction of the 200-300+ PE the typical internet stock is trading at? Regards, Lee