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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: taxman who wrote (21337)	4/22/1999 7:37:00 PM
From: t2	Read Replies (1) \| Respond to of 74651

taxman, I am looking at getting into Dell going into earnings. I think they suffered last quarter due to the release of the Pentium 3 late in February. The transition hurt them in a big way. Some of the month end sales (January) probably just disappeared especially for a high end PC maker. To the best of my knowledge, Dell sells mostly high end PCs. They were probably the hardest hit. In addition, we have seen enough downgrades and lowering of estimates (have not kept track) on Dell that meeting revenue and earnings estimates might actually be an easy task for them this quarter. Might try the same thing with Dell shares---but I want to buy Dell soon (maybe start tomorrow) and possibly sell calls closer to earnings. Unlike Gateway, I might be willing just to dump the shares before earnings. Hard for a big company to grow unless it is Microsoft. I am expecting the volatility in Dell options to be very high. That may make for a great covered opportunity. I might be giving up more potential upside but I don't feel that huge gains for most PC companies are going to happen unless we see a shift in strategy just like Gateway --(for example--providing free internet service on their own ISP service). Even HP looks interesting. I sense that Compaq's loss was everyone else's gain. Remember that Intel's revenue was below projections for their March quarter. That indicates a significant shift in market share at the expense of Compaq.