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Dell Computer Corporation (DELL) Message Board

  • o08o.ugh64w o08o.ugh64w Sep 25, 2012 8:51 PM Flag

    End of quarter window dressing, nothing more

    Within a few days, you'll see buying pick up from other funds that come to the conclusion this would be a good time to initiate a position, or average down an existing position.

    Financials are still strong, expected profits even when reduced don't warrant the current price, you have a solid/stable dividend, and the $100+ million Michael bought with his own money last year is a clear indication of what he thinks.

    I've personally purchased about 10 Dell desktops/servers/laptops in my home and the worst that's happened to any of them is a fan and power supply which died in one of them - about 7 years after purchase...every last one of them was performing just fine as long as I owned them. I just recently unloaded the oldest ones (pushing 10 years old) at the local recycling center. The servers I have are 5 and 6 years old and have taken every upgrade I've thrown at them - in essence, they're new machines because of all the transplants I've given them, running high availability and never ever had a single problem with any of them. They are workhorses and going strong. Dell support? I couldn't comment, because I've never had a need to call for anything - the machines are all rock solid. Then there's the Dell 3100cn color business printer that they were basically giving away years ago for $145 - another workhorse. The thing just keeps going and going.

    What is clear is that the company is not sitting still and relying solely on the computer business going forward. Expanding their enterprise offerings is definitely the right direction. It is higher margin business, there is less competition (you aren't likely to ever see Apple blade servers running data centers), and it diversifies the product line. The potential is there for Larry Ellison and Oracle to step in and buy the company to expand their offerings. They already have Sun - picking up Dell would get Oracle further along in Larry's desire to overtake IBM one day. The Quest purchase just enhances the value to Larry/Oracle. Additionally, Dell would allow Oracle to really become a one-stop total solutions shop.

    Anyhow, the stock price will not remain at this level for any extended length of time. Should it go even lower, I'd be buying more - because someone is going to step in with an offer at some point...and Michael isn't going to be selling for $10/share.

    Sentiment: Buy

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    • I took a loss of $65k today in dumping most of Oct/Nov calls and half the long position - couldn't take this after the stock hit $10.03! This big negative stock dip below $10 is an indication that we will see much lower prices from here.

      Although I agree with everything you say about Dell, these fundamentals don't have any value. Tomorrow we should see Dell take a 10% dip for sure.

    • I took a loss of $65k today in dumping most of Oct/Nov calls and half the long position - couldn't take this after the stock hit $10.03! This big negative stock dip below $10 is an indication that we will see much lower prices from here.

      Although I agree with everything you say about Dell, these fundamentals don't have any value. Tomorrow we should see Dell take a 10% dip for sure.

    • I took a loss of $65k today in dumping most of Oct/Nov calls and half the long position - couldn't take this after the stock hit $10.03! This big negative stock dip below $10 is an indication that we will see much lower prices from here.

      Although I agree with everything you say about Dell, these fundamentals don't have any value. Tomorrow we should see Dell take a 10% dip for sure.

 

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