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Technology Stocks : DELL Bear Thread -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (2017)	10/5/1998 11:44:00 AM
From: Lucretius	Read Replies (2) \| Respond to of 2578

he basically sold it. There's no tax benefit to shorting the box anymore. I think it is bearish that he "sold" it yet still is so devoted that he didn't REALLY sell it. He obviously believes this is just a mkt fear and not fundamentally related to DELL so he wants to stay in while limiting his trading losses. No capitualtion yet, just trading sense and not that great a sense either. I have no idea why he would short the box instead of just selling the POS? Wait till we see DELL posters saying how the PC business will NEVER turn around. some of course never learn? BTW- as the US re-inflates and continues ot cut rates over the coming year, we'll start sseeing some inflation. Wonder how DELL will perform when their JIT system works to their disadvantage? happy hunting -Lucretius

To: Moominoid who wrote (2017)	10/5/1998 12:01:00 PM
From: jbn3	Read Replies (3) \| Respond to of 2578

David, What LoD did was to guarantee that he kept his stock for the long-term capital gains purposes, and for the long-term appreciation which he foresees. However, he looked at the market and believed that the market forces are currently extremely weak, so that the market would probably decline sharply, dragging DELL with it. Consequently, to take advantage of short-term market gyrations, he sold short against the box. In no way does this action change his opinion of the stock's potential... Actually, because he chose an avenue to keep his stock, it underlines his long-term view. A very savvy move, IMO. Effectively, it shows a short-term market bearishness, and a long-term DELL bullishness. He... 1) keeps his DELL for further appreciation at long-term Cap Gain rates 2) makes some additional pocket change by taking advantage of a short term market turn-down--on which he will pay the short-term Cap Gain tax. Regards, 3.