Stock tip time again. Last time Dell went below $40, I recommended buying it. If you had a bought it then, you could have sold it a few months later for $50 a share. 25% return in three months isn’t bad. Well, you’ve got another chance. The spike in RAM prices caused by the earthquake in Taiwan resulted in a temporary downturn in Dell’s price. It went under $38 yesterday and is now begining to recover. You can still buy it at less than $40. Buy it now and you’ll be able to sell it at $50 or higher in a few months. The RAM prices will drop again over the next few months and Dell’s profits will return to normal. On top of that, Y2K will be taking a heavy toll on older PCs. Dell is the leading seller of new PCs. Dell should be doing a lot of business through the next year.
If anybody out there needs a good stock recommendation, Dell Computer [DELL] has recently dropped to near its 200 day moving average. The stock is likely to level off soon and then start moving up again. Dell is now the second largest supplier of PCs and they are still gaining market share in the US and overseas. I own Dell stock and highly recommend it for anyone else looking for a long term stock.