Chakkar

71 Stocks Leading the Nasdaq Higher

Excluding stocks below $10 is normally good. But you risk losing out on some good quality names, e.g., MRVL. Good balance sheet; should be at the head of the semiconductor pack if techs rally.

Good screen nevertheless. ILMN had great results last week and I think the sector is a good place to be for outperforming the broader indices. For example, ISRG missed your screen ($102.65 to $112.09). With no further bad news, I believe it should also help the NASDAQ.

Dell's Competitive Moves Make Sense

This company is trying to figure out whether it is just a computer assembler (it's *not* a manufacturer) or a services company. Let's face it: services revenues have fat margins and can drive profits a lot faster if Dell can capitalise on the opportunity. Easier said than done. Running a services business is a lot more difficult than assembling computers cheaply. Unlike IBM, Dell has never had a software development business so it has to learn a completely new culture.

More broadly, over the long term, I don't expect any advanced-economy companies to be selling computers; margins are too low. Emerging-market companies will probably be hungrier for those same margins as they carry far more marginal value. After all this branding across the world, white box or local brands make up close to half the market. This industry is headed for lower margins.

Then, we have the problem of e-waste. Companies like Dell should also set up [Dell.org] websites because cleaning its e-waste is a break-even business at best. Think it's not an issue? Just wait for some Westerners to get seriously ill from drinking water that was contaminated from e-waste; they were visiting a developing country that receives all this e-waste from N America and W Europe. Lawyers are waiting for it, I'm sure.

Long term, Dell is stuck between $15 and $30, the high end because it starts to pay a sustainable (with inflation) dividend.