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: edamo who wrote (96453)	2/9/1999 4:31:00 PM
From: BGR	Read Replies (2) \| Respond to of 176387

edamo, I guess my comfort level is different from yours, so I dislike margin and liabilities. But the buyer of the '01 100 LEAPS will probably make 100%/year if DELL equity grows at the same rate as earnings growth (50-60%) for the next two years (and way more if the equity growth rate is faster than earnings growth rate). Nothing is guaranteed, even the put-call write combo will fail in event of strong upward volatility (rolling up and out only works to a point). In that case, I would rather bet on DELL's long-term ability to provide steady earnings growth, something that I can judge by understanding the underlying business. But this was a stimulating discussion. Thanks much! -BGR.