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Dell Computer Corporation (DELL) Message Board

  • bashfordcapital bashfordcapital Mar 27, 2013 12:08 PM Flag

    reality of the situation

    Mike Dell's $13.65 icash offer s a very generous, premium valuation.
    As the weeks pass by the reality of the situation becomes clear. that is, Dell is a struggling company trying to transform its business lines to higher margin, potential growth generating products and services. There is no guarantee the future initiatives will be succesful, so Mike dell and his LBO team are taking a significant risk
    by paying a premium to privatize the company.
    There are several institutional stockholders such as Southeastern Asset Management, who paid too much for their DELL shares, and owned them too many years. this has nothing to do with Dell's business operations , but it does reveal the ineptiitude of Southeastern's money managers. T Rowe Price is another DELL shareowner which paid too much and have no one to blame but their own money managers.
    The recent speculators, such as carl ichan and a bunch of amateur stock buyers, took a risk overpaying for their shares, but Dell is not responsible for their reckless, cavalier buying habits.
    When all the ridiulous hype and posturing recedes, and the dust settles, serious DELL investors will vote to decide whether to approve the 413.65 offer, or take their chances with DELL remaining a public company.
    Hope this helps.

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