DELL Shareholders: STICK TOGETHER, HOLD ON, and VOTE NO to the buy-out
Yes, even when Dell's PC business is valued at ZERO, the stock is worth somewhere in the $20s/share--and of course the PC business is worth a LOT more than zero! DELL has bought billions of dollars worth of diversifying businesses in the past few years and those chickens have not yet come home to roost. Michael Dell well knows this--and what those companies will be worth some day. Unfortunately, shareholders do NOT and they are too focused on quarterly earnings.
Michael has a 5-year horizon for getting his new cash machine working while DELL's public shareholders are thinking about the next 3-month period--and SEVERELY undervaluing DELL stock in the process. This is one of those times when "the market" is WRONG. Michael Dell knows this and is taking the opportunity to strike. He's putting up his stock--that which the public has devalued--but only $700MM of his own cash (when he has BILLIONS!) and yet he will retain control of the "new" private enterprise, using OPM (other people's money) to do the deal. Michael is BRILLIANT!!!
For my part, I cannot understand why Microsoft doesn't buy 100% of DELL. It's got the cash to do this on its own! Instead, it's bankrolling the buyout with a $2-3 BLN LOAN.
Please remember: YOU shareholders OWN Dell Computer right now, NOT Michael Dell. You do NOT have to accept Michael's low-ball buyout offer for this company. Please do NOT accept it. Hold on to this gem until a fair price is offered for it.
Best wishes,
Jeff (in Austin, TX)
Sentiment: Hold