Upgrade cycle boosts Dell (DELL)

"Well, you don't have to believe the CEO of Dell. The ChangeWave Alliance (and its 25,000 members on industry's front line) has been telling us that the tech recovery is building momentum -- and it looks like we could just be in the early stages of a big blast. T

"he Alliance's latest consumer PC survey showed planned computer buying had jumped to its highest level in nearly two years -- with more than a 15% increase in projected demand just in the past month, alone.

"All told, 9% of respondents plan to buy a laptop in the next 90 days and 6% a desktop -- with each percentage up a full point since September. It appears the late October release of Windows 7 is driving much of this momentum.

"In fact, when we asked planned PC purchasers which operating system they wanted installed on the computer they were buying, 63% chose Windows 7 -- a full 14 points higher than in the September survey.

"Dell will be one of the biggest beneficiaries of the Windows 7 upgrade cycle, but any boost from consumers will follow the initial surge from corporate customers. One thing is clear. Many consumers were waiting for the Windows 7 release before finalizing their buying decisions.

"On the corporate front (which makes up 80% of Dell's PC business) DELL has shown strength for two consecutive IT spending surveys -- a highly encouraging sign.

"A lot of Wall Street remains unconvinced that the technology sectors are experiencing the beginnings of a full-scale recovery. There are still widespread doubts about the sustainability of any rebound.

"But, if this recovery is the real deal, then investors sitting on the sidelines and waiting for confirmation from sheepish media outlets will pay a huge premium when they overcome their angst and finally climb on board.

"Folks, the probabilities for a full-tilt recovery in technology are increasing each month. Make sure you're positioned in the tech stocks in our portfolio such as Dell."

Steven Halpern's TheStockAdvisors.com offers a free daily overview of the favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.