A few weeks ago, I mentioned how poorly Dell were doing in recent times and yesterday, they released more bad results. That saw them drop around 4%. Unless they pull something out of the bag, you can't help but be bearish about their future. At one time, they had a huge media presence but now you hardly ever hear about them. The price of shares has dropped to about a quarter of what it was in 2005. I was in college back then and everyone had a dell, including myself. But they somehow haven't kept up and the fall-off in PC sales has hit them bad. With all the tablets and mobiles moving on in strides, it's hard to see where a tradional PC maker will go from here.
Dell one-year chart:
The Standard and Poor's 500 Index reached a four-year high yesterday, hitting over 1422 at one stage and as I type, we are around the 1410 mark. Byron Wein reckons it will hit 1500 by the end of the year but I'm not as bullish as that and still think the US economy is shaky. But let's be honest - none of us know really how it will go and these are strange times. If I catch a ride on a trend along the way (up or down!), I'll be happy enough.
EDIT 8.50am: I've just decided to take a chance that we are coming to the end of a little bull run and I've sold the S&P at 1410.5
By the way, Nick Leeson's article is another good one this week and he talks about how prison might be a good thing for some of our bankers - worth a read:
http://www.thejournal.ie/readme/nick-leeson-jail-time-lessons-561158-Aug2012/
In the racing, I've no bets for today but I'm looking forward to the world's greatest racehorse, Frankel, make his penultimate appearance at York this afternoon. I hope his trainer Sir Henry Cecil can make it to the course - he is getting treatment for cancer at the moment and has been a bit weak. It's great to see him continue training and get a horse like Frankel. In the betting, the colt is trading around 1/7 and it is the first time he has raced beyond a mile. The O'Brien horses will probably try stretch things out and make it a stamina test but Frankel has some 17lbs in hand on Timeform ratings and should once again confirm why he is considered the best flat horse of all time.
Frankel at Ascot:
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