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

To: SecularBull who wrote (44988)	5/27/1998 1:42:00 PM
From: freeus	Read Replies (1) \| Respond to of 176387

Oh the market is awful yesterday and today. Perhaps Paul Van Wilk's red alert was right and we should have sold everything. Freeus :o) Panicking with a smile

To: SecularBull who wrote (44988)	5/27/1998 2:08:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176387

Hi LOD -- congratulations on your marriage! Best wishes for a happy life together. Back to the more mundane things. What you are suggesting is that when the momentum traders get into a stock it can become overbought, and when they exit, it can become oversold. So how could anyone contend that a stock is "overbought" when it is down roughly 16% from its high over a period of a week? Let's go further. Suppose Dell had come in with earnings of $0.47 and the price of the stock either continued higher or maintained its level. Then, $98 would not have been overbought judging by subsequent market events. If that's a fair analysis then two conclusions can be drawn: 1. The drop in Dell's price was because a significantly greater number of holders of Dell stock were disappointed by the results than there were of non-holders who were elated and surprised; and 2. If 1. is correct, then we only recognize the condition after the fact. If this is correct, then all you are describing is the action of speculators. Now a fundamentalist would say that if the stock is trading below its intrinsic value it is "undervalued" and if it is trading above its intrinsic value it is "overvalued". So here's the $64 question: is KTEL oversold or undersold, and how does one know? TTFN, CTC