Dell Stock Takes Nose Dive

Mojo

Dell has a lot more renewed compebreastion from HP. HP has really been doing well with their Windows based PCs lately.

Look at HP's stock - doing quite well relatively speaking.

Also, Gateway is back in the action a bit too - improved Windows PC sales.

My point is, Dell doesn't necessarily reflect Windows based PC sales health, and the stock market-price surely doesn't reflect corporate health.

My belief is that most investors don't feel that Dell is a growth stock as much as it use to be - so those mutual fund managers have dropped it.

For those into value stocks, Dell doesn't offer any dividend on its stock... HP does.

Apple has been a good stock for a couple years because of one thing, its unexpected revenue growth rate - fueled almost entirely by iPods. Note that I am stating that the *growth* is fueled by iPods, not the absolute revenue.

iPods or music players are *commodity* items - all that needs to happen is for a compebreastor to come out with an equal or better product - and it *will* happen.

When it does, Apples overvalued stock (look at P-E or PEG) is going to come down a bit.

For those looking for good stocks, my belief is that Intel at $19 is a great buy right now... they are down because of many reasons, but mainly investors are scared off because of AMD's growth which has taken share from Intel.

But in the 2nd half as you know, Intel's new architecture is going to debut - and I think Intel's stock will bounce back up to the mid 20's if not near 30. Also, because Intel's stock has been battered, they dividend yield is now above 2%... so you get a little return while you wait for the stock to bounce back up. Even better news is that dividends are only taxed at a max. of 15% - so buy some!

Good luck!

By the way, no, I do not work at Intel - but I do ok at investing.