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

To: Techie who wrote (46870)	6/9/1998 12:03:00 PM
From: SecularBull	Respond to of 176388

Techie, the whole market has been in a corrective phase, or didn't you notice. I base my prediction (opinion) of an upcoming stock-split, based on past actions be the company when faced with the same prospects for growth the the company saw in the past (you'd know this if you had any idea of what you were talking about). The June 1 proxy statement calls for a proposal to increase the number of authorized shares from 1,005,000,000 to 3,005,000,000 at the July meeting. What would you suggest is their intent here? Maybe their going to give MSD 1 bln shares to make up for all of his selling <ggg>! Your mention of the stock not being at new highs is off-the-wall. DELL was in the tank last November-December, but look where it is now. Look at it's price performance since Jan 1. CPQ, MUEI, and GTW have a long, long way to go to catch up. As for the downturn (or flattening) you see coming, I say look at the chart. Many have said the same things about DELL, many times before you. They were wrong (obviously). DELL's p/e does concern me, but keep in mind that this last quarter is the slowest of the year. DELL still kicked a**. Many on this thread believe in cash flow. I'm not so convinced. But if they're right, then DELL is undervalued. LoD

To: Techie who wrote (46870)	6/9/1998 12:28:00 PM
From: jbn3	Respond to of 176388

Now tell me, why isn't this stock making new highs if I'm wrong? As I recall DELL did set a new high in May. As you may be aware, even the greatest stocks don't set news highs daily. If you look at DELL's price history for last summer, you will note that it did set new highs on a regular basis. IMO, 1) the market has only recently awarded DELL a PE commensurate with its growth prospects. So now it depends on periodic good news to advance: earnings, IDC reports, splits, etc. In the meantime, there is enough market uncertainty, that it is somewhat susceptible to negative news. 2) there was some expectation of a stock split announcement which did not occur, so the stock retrenched a bit. 3) momentum traders have temporarily departed, placing their bets on more timely stocks -- those which report in June and July. They will be back in DELL in time for the next earnings report. That is why I sold the June covered calls: because I did not foresee any strong positive news in June, and thought it might slide back a bit. And that is why I am buying August and further calls. DELLish, 3.

To: Techie who wrote (46870)	6/9/1998 12:32:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176388

Techie, first, a split adds no value to a company, so forecasting a split is not hyping the company. It does, however, attract a bunch of momentum guys and the price of the stock goes nuts for a few weeks, but in the long run nothing changes. But there are indications of a forthcoming split. Why else would there be a proposal to substantially increase (I believe they will be tripling) the number of authorized shares? Do you view this as hyperbole? Hyperbole is when you talked about several analysts noting that Dell lost accounts to IBM. Why? because your statement subsumed incorrect information (that Dell lost any account) and used an inappropriate appeal to authority (several analysts). Now contrast that to Bachman's discussion of the potential for a split. I hope you can discern the difference. TTFN, CTC