I strongly agree in general, but there are risks to acting on your urge even if you turn out to be right:
> is definitely overvalued at $80B"
Stocks move in bizarre ways, particularly tech stocks. If you short a stock and time it wrong, you can easily be right about the fundamentals but get killed by the herd in the meantime.
Going long is safer, but can still be bad. If the price drops below your buy-in, and a merger is agreed at the low price, you can be forced to sell low. You could have bought into Dell, and then been forced to sell lower than your own valuation.
Going long is safer, but can still be bad. If the price drops below your buy-in, and a merger is agreed at the low price, you can be forced to sell low. You could have bought into Dell, and then been forced to sell lower than your own valuation.