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

To: SecularBull who wrote (57088)	8/8/1998 1:57:00 AM
From: jbn3	Read Replies (3) \| Respond to of 176387

DELL's prospects LoD, Ordinarily, looking at earnings only 10 days away, with a probable stock split announcement, this would be a classic no-brainer. Just put your money on DELL -- equities, leaps or calls -- and spin the wheel. However... I'm not sure the scenario falls in the "ordinarily" category. This week we saw some pretty strong devaluations in the DOW, the NASDAQ, and overseas markets. Numerous things have the potential to seriously unsettle the market. 1. Starr's upcoming Presidential hearings could trigger large sell programs if foreign investors pull their money out. 2. Sodamn Insane is acting up again.. (IMO primarily because he perceives our government to be so involved with the hearings circus that they have neither time nor interest to devote to him: the President is spending most of his time defending himself, while the congressional majority (Republican) leadership devotes itself to attacking the President, censuring Reno, and posturing.) 3. The market concludes that the Japanese can't or won't make needed repairs to their economy. 4. Devaluation of Chinese currency. 5. The probability of continued terrorist attacks on US embassies or cities. On the other hand, in light of all documented (IDC and Dataquest data) and all of the hearsay evidence, I think that DELL is going to announce very good earnings. Furthermore, IMO there is a strong probability of a 2:1 stock split. DELL announces after market close on the 18th. That leaves three days until options expiration. Someone posted (was it you) that there is a minimum time of 3 weeks (?) which must be allowed between a split announcement and the effective date. I am guessing that the MMs will probably try to move the stock in the direction of the MaxPain point for expiration, though I have no idea of how successfully they can do that if a split is announced. In any case, after expiration and pre-split, DELL should go up. Bottom line: I am holding my August calls and buying Septembers, even though I had to sell some of my leaps to do it. The future looks good. Europe is getting stronger. DELL's new server facility is due to come on line this fall, which will accomplish two things: increase production capability and inventory turns. I suspect that there may be a short buying opportunity (retracement) after a split. Thread: This is just my personal opinion. 3.