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Thursday, July 25, 2024

DELL(ETE) this from Your Virtual Portfolio?

For those of you who can handle long, detailed, number discussions, this is an excellent article on why, even at this price, Dell is no bargain.

http://philtown.typepad.com/phil_towns_blog/2005/11/calculating_del.html#more
I will say though, that if you apply this logic to almost any stock, there are very few that would stand up to the test.

There is a difference between buy and hold investing (which bores me to tears) and my hit & run style and you have decide what is best for you but, while I may agree that Dell is becoming a commodity and should not get a better p/e than BBY or even WMT for that matter, I also believe that at 27% less than it was in August people will buy it for Xmas!

Fundamentals shmundamentals I say! I’m looking at the January $27.50 for $2.90 (.65 premium) and sell it for $3.60 and go buy something nice (maybe a Dell) with the profits. Just remember, this is not a good stock so I’m setting a tight stop, around $2.50, and hope nobody notices this company is in trouble before I get out!

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