You might give some thought as to the feasibility of any market maker trying to drop a stock like Dell 3 points, as suggested by a very recent post by a SI member. Without some immediate catalyst to help 'them' (MM) create the kind of herd mentality and additional money to further support that effort, selling to a specific point downward, and buying back to the original attack point, seems like an even game and rather pointless. Therefore, unless 'they' can buy at a lower point then 'they' created, and then sell at higher point then 'they' created, the exercise would serve no obvious objective.
There is of course things like short covering. If that were come into play it would most likely be a defensive play to protect bad prior play, not an offensive attack on the stock to a new purpose.
A relatively recent prior post from a SI thread suggested a scenario to the effect that, if a big investor were to unload a large block of Dell, could conceivably cause an immediate decline in the stock price.
If, the first case of MM manipulation, were to occur and it would be immediately followed up with large block selling, then yes beyond any reasonable objection, Dell as any other stock, would go down and drastically in price!
However, Dell fundamentally would not become less of a company. Dell would be the same company with the same potential. The only important thing that would have changed short term, is the reduced price per share.
In a situation of that kind, for those that were to sell the stock (negatively short term),a sizable percentage loss would incur. Logic dictates one should hold on if one could. In fact, buying and holding Dell for some successful investors on this thread most probably would be the strategy of choice.
Under the case scenario as described, as long as Dell remains basically the Dell of today, with the same forward thinking management, with the same potential for future profits, even this unlikely occurrence would not be a defeat of any substantive length of time. It could provide some of us with choices and perhaps, a better positioning for future profits.
Dell would now even be more attractive to those that chose to, and were in the position to, buy. Buy more shares, buy new shares, buy and/or sell options. Good value would be quickly realized. Money would be applied to this value opportunity.
That kind of "white hat" retaliatory money could come from anywhere. It would certainly come from me and many others who see Dell as a great long term investment. It will come from people like me and some others on this thread and elsewhere that size their bets so as to usually be in a position to come in, to some degree, on the dips and partially or totally sell at the highs (all very subjective of course).
Short term developments, under certain circumstances, could negatively impact any good long term stock. That very same negative impact could be an opportunity for some to get on the value it would provide.
One can make money with any stock if played correctly. From my short and long term view, one can also "turn", or at the very least weather, adverse circumstances with the proper investment strategy.
Most of us have gotten stuck at one time or another. Right now I can't think of any other stock I rather be "stuck with". This I say not out of blind loyalty to Dell, but rather with a confidence that I am with a very good, and some would say, great company!
But Dell, like any other company must continue to prove itself in the marketplace. Dell appears to be more than up to the challenge.
Some of us know what it is like to be long riding a stock like Dell. For me it has been a climb to a better place and Dell has provided the opportunity.
Anyone has an opportunity to learn how to improve their return on investment. Perhaps some are more open to that then others. Some are more advanced then others. Some have insisted on following the possibilities rather than the probabilities.
Under the present circumstances, shorting Dell as a way of life makes little sense to me.
Likewise, remaining loyal to a stock whose basic fundamentals have changed for the worse and to the degree that one damages ones ability to move on to more profitable investments, is short sighted.
Thus far, Dell has proved itself worthy of informed and well deserved loyalty. At this point in time I see no major flaws in the Dell short and long term potential for greater gains.
But everything changes, sometimes for the worse, many times for the better. No one person can be right all the time. No stock is invulnerable. Each day is a new day with new opportunities and something new to be experienced.
If we can help one another become better investors and traders then the time we put in on this and other threads will be worthwhile.
Who knows, we may even come to the conclusion that money only has value when it is used it to help make this world a better place.
But that may be off topic?
Ah well, it is what it is , whatever it is.
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