Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: kemble s. matter who wrote (61258)	8/26/1998 9:54:00 PM
From: Petrus	Read Replies (1) \| Respond to of 176387

Copied from another thread, Can anyone give me some guidance ? To: Caroline (8374 ) From: Petrus Wednesday, Aug 26 1998 9:51PM ET Reply # of 8375 Dear Caroline, Many thanks per your kind reply. Neither do I want the shares of my best stock (DELL) getting called away from me. The Strike price (risk) vs Premium (profit) ratio is related to your future expectations of this stock, since it does not depend on market conditions whatsoever. With Dell's behaviour, any strike price seems hours away. My main concern is how to obtain an additional income (writing covered calls), while not limiting my upside potential. Should I just buy back the call, when the stock reaches its strike price (hopefully with the least time value possible) ? *Probably the best (if one can afford) would be to buy another set of shares,, better yet sell everything & just buy Dell (only keep some Cisco)?, but then the same dilemma would persist, for what Iam trying to do is get an additional income (26% / year range), writing calls 8-10% out of the money every month. While still keeping my favourite shares for ever. Do you, or any other fellow investor have any thoughts?? Your comments will be much obliged, Petrus

To: kemble s. matter who wrote (61258)	8/26/1998 10:53:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 176387

P/E Hi Kemble: I certainly hope so as Dell is quite undervalued at these prices.As you know Dell's forward P/E is only around 46 or something going by consensus estimates and you know analysts are almost always wrong and I assume therefore the actual forward P/E should be much less than 46. What is important to note though is that Dell is going to be undervalued as long as the company continues grow the way it has been in the past. I know it sounds like convoluted logic but hey that is me.<g>