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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Magnatizer who wrote (16534)	10/9/1998 2:16:00 AM
From: Electric	Respond to of 42787

I agree on DELL David, great analysis. I am a trend follower though, and DELL dropping might not be over, but it isnt a 10 dollar stock. Maybe BB needs to walk the walk and hold a short until DELL gets to 10...lol My take on DELL, is inventory control and process domination. They have two keys to a manufacturing monster, they have zero holding costs and due to that they are also taking advantage of pricing decreases. Also note their emphasis on customer satisfaction and marketing. Tell me another company who has the same rep? DELL will rally, come earnings and the end of Oct, those that are not in DELL at whatever price are going to miss a great run, and BB will have to close his short by taking a second or third mortgage.. I have spoken..

To: Magnatizer who wrote (16534)	10/9/1998 6:06:00 AM
From: bobby beara	Read Replies (1) \| Respond to of 42787

David, If I may - Dell's stock price has very little relation with fundamentals of the company, based on historical p/e ratios of the industry, Dell should be trading under $10 right now - but this is the bubble mentality, where hero worship comes at an extreme premium. This is a no brainer here. The semiconductor, software and boxmaking industry is a highly mature industry. The stuff that fueled this boom - high margins - are no longer there and only the strong are left at the top - intel, microsoft, dell. You hit the nail on the head commodity. What fueled Japan's bubble was the growth industry of consumer electronics, but when that industry matured and margins started shrinking - bust. Same thing is happening here in the computer industry. bb