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: jhg_in_kc who wrote (79993)	11/13/1998 4:17:00 PM
From: Moneysmith	Read Replies (2) \| Respond to of 176387

Going for number 80000 on this thread..... Dell will be $60 on Monday.

To: jhg_in_kc who wrote (79993)	11/13/1998 7:18:00 PM
From: larry	Read Replies (4) \| Respond to of 176387

I do see strong support at 60 and 55. The worst I think, can go to high 40s if the market tanks. The market should tank as now the rally is based on no earning growth. I do see the DOW and SP 500 overvalued by at least 10-15%. If DOW tests 8k, DELL should follow suit and test third tier support at 50. DELL will go up to 80 some time. However, it won't come this time until the street sees the report first. Show me the money! IF you beat first call by 2-3 cents, I will reward you with a better multiple. If next time DELL only meets or beats by one cent, it had better stay around 60, otherwise, a more dramatic freefall is coming. When I mentioned that the old DELL time is over, I meant to say that investors should no longer expect a 100%+ yearly return on this issue. If you believe that DELL is fully priced currently (I see 55 as a fair value), then you probably will enjoy a nice 50% return within a year. So according to my model, DELL should have a 12-month target at 75-80 barring any disappointment. This probably will no longer attract momentum players because they are looking at triple digit yearly gains. And if we were to go into a recession next year, I don't see any issue (including MSFT) trading at trailing PE more than 50. As far as DELL goes, it provides an attractive investment opportunity, but the downside risk is also huge. Imagine if DELL were to miss the first call by one penny, the issue would be cut by 50% within a week. Will they miss in the future? I don't know. But it looks quite possible that soon they are going to report earnings that barely meet first call. DELL is setting the bar too high and it aren't no MSFT, which has the luxury to hide revenues and earnings as they wish. good luck, larry!