To: Dr. David Gleitman who wrote (79618 ) 11/13/1998 7:11:00 AM From: GRANOLA Read Replies (6) | Respond to of 176387
RE: Where DELL goes from here: IMO, there is TOO MUCH negativity about Dell's earnings report for the stock to sell off very much...this sounds contradictory I know, but I have learned with this stock (and many others) that if you think a move (up OR down) is obvious you are probably wrong. In support of the stock price remaining solid after the hype dies down, the stock didn't run up as much prior to this report as usual, now it is down below an all time high again, and right now the skiddish, shorter term investor is likely to sell to take a conservative profit . The institutions aren't likely to sell Dell and buy CPQ just because CPQ is publicizing their ongoing efforts to copy Dell's superior business model...they know better that actions/execution speak louder than words. And they know, as do we longer term Dell holders, that even though Dell may come down a bit on the news, it will spring back as many investors who have been waiting to jump in - jump in! AND RIGHT NOW THEIR IS A TON OF SIDELINE CASH JUST WAITING TO GET IN TO A STOCK LIKE DELL! Much more than was the case in May, when the stock sold off and took a few weeks to bounce back. Also, like I said, the stock had run up so much last spring whereas it has been in the 45-60 range for several months here (back and forth in this crazy market)...it just broke out last week but it WAS TIME, as with other good high techs (and the market in general). Now excellent earnings and growth prospects should SUPPORT the breakout above 60, and to new stock price highs, once all the press about whisper #s subsides, and people realize that Dell's competitive position is not significantly threatened as far as anyone can see (ie. at least a year, and no one really knows what will be happening after than anyway). I AM INTERESTED IN OTHERS' OPINIONS, and this is of course only mine. GR