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

To: Uncle Frank who wrote (83375)	12/2/1998 5:14:00 PM
From: Mohan Marette	Read Replies (2) \| Respond to of 176387

Online Buyers to Double by End of 1999 Uncle: Here is something interesting. I think that 50% sales through internet by 2000 just might work out for DELL. =========================================================== Approximately one-third of all Internet users have made a purchase on the Internet in the past year, according to eMarketer's eCommerce study. The study also found that the consumer-directed segment of e-commerce, despite being dwarfed by business-to-business in sheer dollar size, will grow significantly over the next several years. Over the past year, 16.8 million Americans have purchased at least one product or service online, according to eMarketer. These online buyers represent 7.8 percent of all Americans age 14 and over and 31 percent of all active Internet users. By year-end 1999, however, the number of online buyers will double to 36.1 million, or 16.6 percent of the U.S. population 14 and older. Related item: A study by Jupiter Communications has found that 35 percent of the Internet population has purchased online in the last year. Those that don't buy are held back by price, not security, Jupiter said. Click here to read this item. By the year 2002, eMarketer says the U.S. will have 63.7 million online buyers, representing nearly one-third, or 28.4 percent, of all Americans 14 and older. While eMarketer has found that 16.8 million Americans are actually buying online today, nearly double that figure, or 33.1 million are "window shopping" -- browsing, researching, and comparison shopping for goods and services over the web. According to CyberDialogue, some 9 million shoppers will buy items offline during the 1998 holiday season after first gathering information online. An earlier study by Jupiter Communications found that 35 percent of the online population did purchase a product or service in the last year and those buyers were very satisfied with their shopping experience. Almost 95 percent of those buyers said they plan to shop more online in coming months. Date: December 2, 1998 Source:CberAtlas

To: Uncle Frank who wrote (83375)	12/2/1998 5:34:00 PM
From: SecularBull	Read Replies (1) \| Respond to of 176387

ON OPTIONS: Uncle Frank, it depends on your risk-tolerance as to which options would be best for you. A safe player is usually going to pick up just in-the-money or at-the-money options during a period of consolidation (similar to the period we've just witnessed). Someone who expects a run-up from here into earnings might choose to bet on that, and buy out-of-the-money calls at a lower premium. If I were buying Feb '99 calls, I'd buy the 65s, or maybe the 70s. I like the 65s, because they're at-the-money (safer IMHO), and they don't cost much more that the 70s for $5 more in strike. A good strategy (more advanced) is the bull spread, and is used by those who expect the stock to move up. You buy a call with a lower strike, and sell a call at a higher strike. For instance, you would buy the Feb 65 at $8.625 and sell the Feb 80 at $3. Your net cost is $8.625-$3.00= $5.625 for $15 of spread. While the Feb 80 is technically a naked call that you've sold, you (in reality) are able to cover it with the call you own at $65. So if someone calls you on the 80, you call the 65 and pocket the $15 difference. When you subtract your initial cost to open the position of $5.625 from the $15, that leaves you with a net gain of $9.375 (on an investment of $5.625 or a 166% return on investment). The drawback is that you will be called out of the 80s if the stock moves up above $80, and therefore lose any upside potential (upside cap) past that point. The plus is that you're only out $5.625 per share as opposed to $8.625, and if the stock finishes below $65, you're only out $5.625 vs. $8.625. WHATEVER YOU DO, DO NOT SELL THE 65s WITHOUT BUYING BACK THE 80s (CLOSING THE SHORT) AT THE SAME TIME. Otherwise, you'd open yourself up to having to cover the short at wherever the stock price is at the time you're called (not a good idea!). Remember, if your 80 can be called, you can call the 65 to cover, as long as you still own it. A further benefit of this strategy is to buy back the 80 if the price drops significantly, and not sell the 65 until later after the stock price moves back up (assuming it does, but then that's your bet. Isn't it?). This removes the upside cap. NOTE: The illustration above does not take into account commissions. This strategy should not be used if you are at all unclear about the mechanics involved. There may also be other, good combinations of options using more or less spread, etc. other than my example. Try moving out into May where the premiums are steeper [it makes most sense when you can buy the most spread for the least, net out-of-pocket, and assuming that you think the stock has a resonable chance of getting above your lower strike plus the premium you paid (i.e. break-even)] Let me know if you have more questions. Regards, LoD

To: Uncle Frank who wrote (83375)	12/2/1998 6:33:00 PM
From: JBird77777	Read Replies (2) \| Respond to of 176387

When selecting a strike price for options, I first estimate what I think the stock price will be at expiration date. For example, with Dell at 66 3/16 now and a Feb. 99 expiration, assume that you predict a Dell price of 76 at expiration (about 15% appreciation in about 3 months). Once you do this, it is a pure mathematical exercise to select the strike price that will maximize your ending value. To keep the math simple, assume that you can buy an option on one share or fractional shares of Dell (as opposed to the 100 that come in one contract)and that you have exactly $19.125 to invest. For this $19.125, you could buy an option on one share of Dell with a strike price of 50. At expiration, with Dell at 76, you would have a value of $76 - $50 = $26. Alternatively, using this same $19.125, you could (theoretically) buy an option on $19.125 / $15.125 = 1.26 shares of Dell with a strike price of $55. At expiration, you would have a value of 1.26 x ($76 - $55) = $26.46. Similarly, the 60 strike price would produce a value of 1.61 x ($76 - $60) = $25.76. Accordingly, under these assumptions, you would definitely choose the 55 strike price, as this would produce the highest ending value ($26.46) for you. JB

To: Uncle Frank who wrote (83375)	12/2/1998 6:37:00 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 176387

Dell is King in the business arena, and is making a move to do the same in the home. I just received a beautiful 24 page color brochure - Dell's Home Systems Catalog. It appears to be a co-op'ed mailer with First USA (credit card) Co., and includes an offer of 3.9% financing if you use First USA'a card when ordering. Great stuff. Frank

To: Uncle Frank who wrote (83375)	12/3/1998 1:23:00 AM
From: Don Martini	Respond to of 176387

Hi, Uncle Frank! Here's a more elaborate strategy. With February options: Buy 65 Calls @ $8.50 Sel 65 Puts @ $6.50 Net Debit: $2 You cash in at any price over 67 You can roll out the Puts if the price drops, take in more premiums. The problem with buying calls is you can lose all you pay. To lock in profit, add another trade: sell 85 Calls for $2. Zero cost combination: $20 upside potential, 10 contracts = $20,000. You can wait till Dell rises a few dollars then sell the 85s for a bigger premium, get positive cash flow early on. I place limit orders near the market to get the prices I need. Will post another strategy separately. Happy investing, Uncle! Don