Curious if someone could help me out on a few questions I have regarding Dell. I'm looking at investing in it - With a Market Cap of 28B, and a P/E of 11, I guess I'm confused as to why it just stays stagnant around the level its at. It seems like a decent play for a long position. I'm not a seasoned investor by any means, so any help as to what I'm missing, any advice either way, etc. would be appreciated.
For the last 2 years DELL has traded in a fairly narrow range $12 - $15. Charts indicate an upward trend starting mid 2010 - not quite at the mid point. Last month's price action and volume have been relatively good. Probably $3 - $4 upside left ($18 - $19)- before a correction with $15 emerging as support. Worst is behind us for now.
very limited downside from here. Shorts had their fun, the trend is a significant move higher. Cash Flow is excellent, PE shows it's undervalued, extremely diverse customer base - moved away from consumer focus, more corporate/gov't deals. The stock has been in a rut but is starting to breakout big time. Major support finally been formed and if it holds $15.50-16, it'll power to $19 in my opinion in near term. If they have good numbers next month, easy $20 stock - you'll see a tide of analysts (aka bullsh*t artists) finally say Dell has truly transformed the company even though that's happened already. All my opinion good luck.