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: jim kelley who wrote (128005)	5/24/1999 1:06:00 AM
From: safe_trade	Read Replies (4) \| Respond to of 176387

What is hedging ? How does it work ? I also have margin worry ?

To: jim kelley who wrote (128005)	5/24/1999 7:36:00 AM
From: stockman_scott	Read Replies (2) \| Respond to of 176387

<<The 200 day MA is 36.41. It could dip below that by 10-15 %. Especially, if there is a market correction. But this type of situation should be viewed as a short term condition. Remember....DELL not same.....DELL different.>> Jim: I tend to agree with you. DELL is NOT performing like it did during the first year I owned it. In the last 6 months it has been tougher for DELL to exceed the estimates and the stock is under pressure. I love the company and admire what MSD and his team are trying to accomplish. Yet, late last week I decided that I no longer wanted to have DELL on margin. Borrowing to own extra shares of DELL made A LOT of sense when the trend was my friend. Things have changed -- at least temporarily. Check out Monday's Investor's Business Daily. On page B3 there is a story about how the top Funds have sold some cellular stocks as well as DELL. We didn't go from $55 down to $37 by accident. That's clearly NOT all individual investors re-allocating investing dollars. The IBD article says..."The Funds heavily sold DELL Computer, one of the great stocks of the 1990's bull market. DELL was a favorite of many money managers as it rose tenfold in the past two years. Tracking selling by top Fund Managers is a good way to get an early lead on a stock that might fall out of favor. It can also confirm that a weak stock might continue lower....IBD counted 101 Funds selling DELL Computer, while just 76 bought. The turn in events in DELL's popularity among top Fund Managers coincides with the stock's recent correction form a high of $55 in February to a low of $35 3/8 in April...Currently the stock is in an intermediate-term consolidation that has lasted about 3 months. It's trading in a range roughly from $35-45. The pullback stemmed from a shortfall in revenue for the fiscal fourth quarter ended Jan.31....The maker of personal computers has a 99 EPS rating from IBD, the highest possible." Three of the 8 funds profiled on page B3 had DELL on the top sell column. I am not totally negative on DELL. In the LONG RUN I feel that they will thrive and re-gain support. Yet, I had too much money tied up in this stock (especially on margin). I now will continue with 1/3 of my recent position in DELL -- for the LONG RUN. The rest of my investments are internet plays -- primarily in my online IRA. Thanks for sharing on the thread. I enjoy reading your posts. Best Regards, Scott