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

To: Voltaire who wrote (96526)	2/9/1999 9:55:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

Voltaire, perhaps the naive are the people who are flush with cash having sold today in their attempts to try to time the market. But my basis in Dell is around $12. So who's naive? The naive are the people who are moved by nonsensical scare stories. These are the folks that puke their wealth when Jerry Granville sneezes or Ralph Acompora flatulates. The naive are the momentum investors who jump in and out of stocks because their pals do so. These guys are the blind leading the blind. The fastest way into the poor house is trading. If you buy and hold good quality companies, over the long run you will do quite well. Now I will tell you what is behind the decline. It is a run up of over 50% since October. It is the momentum investors piling on. It is froth on top of froth. I have been warning this thread for some time now that valuation is becoming an issue -- and I am not the kind of person to harp on valuation. But when you consider that companies like Dell and Cisco and Lucent and Microsoft are followed by scores of analysts, and studied to death by god knows how many investors, and the price rises at three or four times the rate of earnings increases you don't have to be a rocket scientist to figure out that something is wrong. So maybe I'm naive because I believe that stock prices are tied to cash flows. Maybe I waste my time looking at 10-Ks and 10-Qs. Perhaps I should just leave the arena of investing to those who rely on astrology, esp and assorted other black arts. But maybe I'm not the one who is being naive. I'm not the one who believes in the tooth fairy. CTC