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JimVanMeerten (56.54)

How about Dell?



September 13, 2011 – Comments (0) | RELATED TICKERS: DELL.DL


Dell (DELL) is not the most innovative computer company but they continue to "custom build" computers to fit the needs of both the retail and business customer. Consumer sales have been weak but businesses are continuing to replace ageing technology to keep up with the new direction of cloud computing and the massive amount of required data storage that just seems to keep building.  Dell's recently depressed price could signal a good accumulation point. Consider the trading price range compared to the 20, 50 and 100 day moving averages over the last 6 months.

Barchart technical indicators:

1 - Technical sell signals can signal a good accumulation point for stocks that you want to add to your portfolio for their long term appreciation

2 - Barchart 88% technical sell signal

3 - Trend Spotter sell signal

4 - Below its 20, 50 and 100 daily moving averagesselling at a 19.38% discount to it 1 year high

5 - Relative strength Index is 43.29 and still falling

6 - Barchart computes a technical support level at 13.54Recently traded at 14.19 which is below its 50 day moving average of 15.56

Summary: Dell (Dell) will be around for a good long while.  The question is not will they survive, the question is how well will they thrive when the economy recovers.  If the economy recovers sales and earnings will improve.  A robust stock market with a return to historical P/E ratios could mean that investors entering at this level could see an annual total return in the 16-18% level.

Jim Van Meerten is a Marketocracy Master

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