Sell Dell ahead of earnings?
Answers
221 points
BryanPerry answered one year ago …
Well, today's report may be the strongest earnings Dell sees for a long time.
We all know that retail consumers are toast so Dell's business will definitely suffer from that side.
But our ChangeWave’s Alliance, a nearly 15,000-member strong organization of professionals in all sectors, provided answers for our latest corporate IT purchasing survey, which shows a collapse in U.S. business spending of historic proportions. It forecasts record pullbacks occurring both in the current fourth quarter and well into the foreseeable future.
This data is extremely fresh, as the survey was conducted Nov. 6-12. Perhaps most alarming is the fact that the expected pullbacks are set to come when we normally see seasonal increases in spending, which suggests that any type recovery will be extremely difficult for Dell.
474 points
spider348 answered one year ago …
Playing pre-earnings announcements is gambling. Wait for the news, wait past the first 15 mins on the open, then go with the direction.
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3963 points
MNSL answered one year ago …
I agree with both Bryanperry and spider348.
Currently consumer spending power is very weak. Steps should be taken to increase consumer income. I do not think this will happen in the near future. The way they cut jobs how can we expect increase in consumer income? This will result sharp decrease in demand for some products including products in the technology sector. There is a possibility that there will be sell off in the technology sector sooner than later.
This is the time to invest in next rotating sectors. We should look for stocks and sectors with strong base. In addition we should monitor what cash rich funds are trying to do next and how they are going to invest in the next couple of months. This is an ideal time for value investors if they select correct sectors and correct companies. Some cheap stocks will stay in the same price for ever. Buy companies that are going to make profit in the next 05 years and companies that going to survive from this mess. Some companies will not have any competition in the future.
Only some sectors will benefit most from the current mess. There will be short supply in some products in the next 03 to 05 years. As a result of this there will be sharp increase in demand for some products. So those sectors will outperform market in the next 05 years. Some sectors, some companies and some countries will benefit most.
Now some top investors including hedge funds expect sector based bull markets in the next 06 years instead of broader based bull markets in some countries like USA. I completely agree with them.
Market players should be more responsible when they invest and do business. Otherwise we will see economic mess like today again and again.
