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Dell Computer Corporation (DELL) Message Board

  • value_oriented_123 value_oriented_123 Nov 21, 2012 12:41 PM Flag

    True or False ( T/F ) -----------------(3)

    $6 a share means $10.44B for the whole firm ($6 x 1.74 billion shares).

    Dell from operation,
    fiscal 2012 cash flow was $5.527B
    fiscal 2011 cash flow was $3.969B
    fiscal 2010 cash flow was $3.906B
    fiscal 2009 cash flow was $1.894B
    fiscal 2008 cash flow was $3.949B,

    implying the buyer at current price can get all the money back in 2-3 years, and still own the whole business, and will continue to reap the tremendous cash generated yearly from operations.

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    • Remember when was the last time when Cramer recommended buying HPQ? If you listened to him and bought, you would have lost everything. Like stock analysts, they tell you to buy at high and sell at low. Cramer would shift your personal wealth to the Wall Street. Wall Streeters make money every year, and that money comes from you and us little guys.

      When HPQ was in its hey days, I didn't buy because it was too expensive. We then witnessed it steadily falling from about $50 to $20, then $18. And at this level, thinking it a bargain, some probably could have started buying into it. If it was on margin, it would have been a total loss. Margin buying is extremely risky. Diversification also is a must in any portfolio. My self restraint from trading HPQ and value-based research allowed me to steer clear of the stock. Never did I own a single share of HPQ. Of course not when it was arouond $12 pending the acquisition of Compaq a decade ago. Now the stock is at under $12 again, bottom fishers may be watching. My view is it is still a wait and see situation, as it will need quite a few years to turn itself around both top and bottom lines wise. Its huge debts burden is a big negative, and a lot of its debts will come due in the next two years.

      As shown in my previous posts, it will take only 2-3 years to get all your investment money back if one buy up the whole company at this current price of about $9, and still sit at your corner CEO office and own 100% of the business, which at current rate, will continue to generate $3-5 billion cash flow from operation annually. Isn't is a cash cow? As tremendous amount of money will be made on this stock anyway, there is no reason that little guys like me can't take advantage of it. So let's make some money for our families in these next 24 months. Big boys know. They are now quitely accumulating it. I observed that retail is selling due to margin calls pressure, and those rich greedy big boys are happily taking their shares. The current price is at depressed, compressed and suppressed level. It would therefore be fantastic if one is able to make use of this extremely exceptional Dell buying opportunity.

      I am on very light margin, and full diversification as it has always been. I won't tell you to sell your house to buy a stock. Investment is an art in life. It should be a balanced approach in terms of all your own criteria. Though I see Dell as having the most compelling risk/reward ratio in the universe where we live, my portfolio still stretches boardly across different industry segments. I buy drugs, as well as biotech too.

      Happy Thanksgiving And Smart And Confident Investing!