Reading the Tape: Follow Up on Dell
Dell descends futher into Hades.Shareholders continue to punish shares, sending them to roughly their lowest close in two plus years.
We nailed the Dell call.
On 8/16, we lambasted Dell for spotty customer service:
In a survey conducted last quarter, users beat up on Dell, ultimately sending the world's largest PC vendor into a virtual tie with Apple. The report awarded Apple a score of 81, compared with an industry average score of 74, in results released today. Dell, on the other hand, earned a score of 74, 5 points lower than what they received last year. If you own a Dell and have ever tried to reach the customer support line, you can emphathize with this: the length of time on hold with Dell customer service representatives was the #1 complaint. We're unabashedly giving Dell an underperform rating until their CRM improves.When we made our downgrade, Dell was sitting at $37.
Today, Dell is near $30.
Going forward, investors should pay attention to the crucial $30 support level.
If it cracks, Dell will be singing another round of the blues come Thanksgiving.
However, it's also safe to say that Dell can't fall much lower than where it's currently trading.
Earnings are on the 10th of November -- if they surprise, Dell could easily cruise back to the $36 - $38 range.
In the meantime, we're just glad we advised readers and suscribers to bail out when it counted.
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