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

To: Khan who wrote (50041)	7/7/1998 7:00:00 PM
From: jhg_in_kc	Respond to of 176387

TO ALL BULLS AND BEARS ALIKE: RE RUNUP TO AUGUST 18 EARNINGS Nilesh Parikh wrote this back on May 26. It summarized Dell's behavior in the 30 days or so before that earnings release, the previous one in February. If the pattern repeats itself Dell will go up 50% between now and August 18th when it should be at 130. Dell will trade between mid-70s to mid-80s until July and back to 100s before the next quarter's earnings. Perhaps, the whisper number won't be that high, though Dell is already suggesting and in a strong position to beat the First Call estimates by 10% this quarter. Dell & CPQ are going to be the long-term survivors in the PC markets, Dell of course will capture more market share worldwide faster and keep the profit margins much higher than CPQ or anyone else in its class. Does anyone think this will not happen this quarter? If so, why? Is the Street less enthusiastic on Dell because its ASP went slightly down and it didnt beat the whisper last time? To all, especially Chuzzlewit and Meathead what should we be on the alert for that would warn us of slower growth (an excuse for the bears to come closer to the campfire on August 18th and short this fine company)? sincerely, jhg (my second post) Incidentally there is a web page devoted solely to whisper numbers--www.whispernumbers.com I don't know how reliable they are, but how can a whisper number be official in any case?

To: Khan who wrote (50041)	7/7/1998 7:02:00 PM
From: Mike Allen	Read Replies (1) \| Respond to of 176387

Playing DELL options. I buy calls that don't cost a lot to play when the stock is down several dollars from it's all time high. Say, like, Nov. 120 options when it was 79-80 bucks. They were then trading at around 3.5 dollars a contract. (100 shares) What I do then is sell the contracts when the stock runs up during an options expiration week a couple of months before they expire. You can often double your money. But you can't be greedy and hold because they can quickly fall. Another play I like are the Y2K leaps. Buying 70 or so strikes for Jan. 2000 for a reasonable premium gives you plenty of time to make money next year when the computer stocks go nuts for Y2K upgrades. Bottom line....When Dell is down and you think it's at it's low, buy out 6 or so months at a high strike for low premium and then sell the option early enough at a peak price that someone will buy them because they still have time to gamble with too. If it falls back buy more call contracts. Also average into your option position. Good luck.