Thursday, March 29, 2007

DELL: Headed Lower

The following comments were taken from
DELL announces that it will delay the filing of the Form 10-K for its fiscal year ended February 2, 2007 beyond the prescribed due date of April 3, 2007 and the subsequent extension date of April 18, 2007. The co will delay the 10-K filing because that investigation has not been completed.

Dell also announced "As we move toward the conclusion of our investigation, we are committing the time and resources required to ensure a thorough and comprehensive review and resolution of all identified issues and the implementation of appropriate remedial measures," said Thomas W. Luce III, chair of Dell's Audit Committee. The Audit Committee's investigation has identified a number of accounting errors, evidence of misconduct, and deficiencies in the financial control environment. The Audit Committee is working with management and the co's independent auditors to determine whether the accounting errors necessitate any restatements of prior period financial statements, and to assess whether the control deficiencies constitute a material weakness in Dell's internal control over financial reporting. Mgmt continues to be committed to resolving the issues raised in connection with the investigation, and regaining compliance with all SEC filing requirements and all NASDAQ listing requirements, as soon as possible.

After hours DELL is trading at 22.74 down .65 (2.78%) from today's close

Above is a daily chart for DELL. Technically the stock looks like it wants to test the low from 2 weeks ago which is at 21.60.

Notice how DELL tends to make significant highs every 5 1/2 weeks and note the position of the stochastics and the downward slope of the 50 day moving average. This stock has been making lower highs and lower lows since last December.
Technically I have to be bearish on this stock and look for lower prices in the coming weeks.


Sandro said...

Enough to press Nasdaq lower. It's under 200-day line anyway...

Robert Babak said...


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