Within their industry, Seagate is in what is practically a monopolistic position.
Dell is a completely different type of company, with major competitors in every one of their business product and service lines.
Hope this helps.
What are you babbling about now? You wrote 'If MDell keeps screwing around"? Nonense.
Mike Dell and his LBO team made a very generous premium type offer. If icahn,( or other Johnny-come-lately stockholders) do not vote yes to $13.65 then Dell will remain a public company and (on the news) the share price will decline 20% to 30%. That's how the stock market works.
Ichan may lose a few hundred million dollars here, but he is an old man and can afford the loss.
Hope this helps.
The Dell Board of Director's should have pursued a strategy which would bankrupt the company ?
That is ridiculous.
There is absolutely no justification for borrowing money, factoring out receivables etc..... to raise money for the purpose of paying a dividend. Leveraging a company's assets only makes sense if the
money is used to grow a company's business operations. To fnd its buyout offer, Mike Dell and his buyout team are borrowing to pay shareholders the $13.65 per share. This puts the risk on Mike Dell and his LBO team. If Mike Dell is able to manage the new debt, and transform the company's business lines to becoe growth lines, then certainly Mike dell and his team deserve to profit from thatw ork. but there are absolutely no guaratees that their business plans will produce profitable reults, and at the very least it will take a few years of work.
Icahn's "plan" is for DELL to now borrow money to pay a dividend? That's a joke. If he wants to be taken seriously he needs to come up with the money to make his own buyout offer and then hire people to run the company. same goes for southeastern or any other disgruntled stockholder. it's put or shut up. Right now Mike Dell is the only one making an offer, and it's a generous one at that.
Hope this helps.
Carl Ichan proposing that DELL factor its receievable, and on top of that borrow billions of dollars, to raise the cash to pay stockholders a one time dividend? Essentially bankrupt the company to pay him off ?? that idea is absurd.
if Ichan , Southeastern, or any other DELL stockholder thinks DELL is worth more than $13.65 then they need to come up with the money and submit their own buyout proposal. Put up or shut up.
Like fluteman, you came here after the rumors, after the stock price had popped 30%. You may pretend otherwise, but who are you really kidding ?
I've never shorted a stock in my life.
Over the recent years I have regularly traded DELL stock, usually holding for a few days to a few months at a time.Same with MSFT and CSCO. These large cap old tech type companies, during particular market conditions, are reasonably safe trading stocks. When DELL traded below 49.50 share, and even in the high $8's for a it last year, the stock offered attractive risk/reward. Where were you then ?
Where was Sotheasstern Asset Management ? All the crying about a $13.65 per share offer is absurd. It's a high premum offer, especially considering DELL"s alarming negative business trends. If the current offer is not voyed YES then i expect dell stock to traded down at least as low as $10.50 per share. That is the risk anybody buying in here now, at current artificially inflated prices, should assume.
Hope this helps.
What are you yapping about now ?
Nothing has changed, fluteman. There is still only one buyout offer for DELL., $13.65 per share.
If that offer does not receive enough YES votes then Dell will remain a public company and its stock price, depending on sock market conditions, will trade significantly lower than todays buyout inspired artificially high price. if this happens stockholders who bought in late, such as yourself, CTG, etc....will suffer a financial loss.
Going forward, if DELL's business lines market share continues to erode, as evidenced by the recent Quarterly results, it is likely DELL stock will suffer further declines .Mike Dell and his LBO team, if they continue to have interest in privatizing the company, will likely have a future oportunity to do so, at a significantly lower price than their current $13.65 per share offer.
Hope this helps.
30% premium prive is "screwing over shareholders"?
Prior to buyout rumors, DELL stock traded about $9.50 to $10 per share. Considering the recent months
market run-up, without any buyout rumors I expect DELL stock would currently be trading about $10.50 per share.
What are you babbling about ?
Mike Dell's $13.65 offer is about a 35% premium above where DELL shares traded much of last year.
Without his offer, and especially considering DELL's recent quarterly business numbers, DELL stock would likelb trading at $9.50 per share right now.
Considering that shares not voted will be registered as "no votes", the LBO offer has practically no chance of approval.
I expect that most all those satisfied with a $13.65 price have already taken the opportunity to sell their shares. The remaining shareholders, mostly new to DELL and speculating here, are not inclined to vote.
Once the vote happens, and the LBo offer is officially rejected, I expect DELL shares will immediately trade in the $9 to $9.50 range. At that point Southeastern Asset Management, T. Rowe Price, and other significant DELL shareowners, will have some explaining to do to thier clients. Choosing to vote against $13.65 , and accept the shares trading below $10, a more than 30% decline, is a challenging position to defend.
You mean when the current buyout offer of $13.65 is rejected and DELL share trading prices drops down to about $9 per share?
#1, you might have at one time owned afew hundred DELl shares.
10.000 shares? Not a chance.
#2I never told anyone to sell anything. I wrote that Dell would likely be acquired at $12,50 per share. That may still prove true. In any case, $13.50 is a very large premium price which Mike dell is currently offering shareowners.
Hope this helps.
Now i must ask, if Southeastern's "analysis" values DELL at $23 per share, why doesn't Southeastern make their own buyout offer at $16, or even $15 ?
Why has KKR, or Berkshire, or Ichan, Oracle, or any other well capitalized firm made a buyout offer for Dell ? I
The company is for sale right now, open to any interested and capable bidder.
Why shoukd Mike dell overpay now? If his offer is rejected he will most likely have the option , later this year or next year, of making another buyout proposal, at potentially a significantly lower offer price.
I am aware of Southeastern's function as a "money manager'. However, if that firm has true conviction that "Dell is worth $20 or more" then Southeastern should consider transforming its function to that of an LBO business management operation. It's really their only option to get a higher return for their current Dell investment.Just complaining about someone elses offer for their shares is not productive, or even professional.
No reasont to sell now. Mike Dell and his LBO team will wait until the shareholder vote before either payingthe $13.65 per share, or retracting their offer.
In the meantime, there is a chance that another bidder might emerge.
Consequently, the risk in owning DELL shares is greatest on or near the voting date.
As for your supposition that potential "yes" voters may have already sold and, or are selling at current prices, I agree, that is happening.
#1 if no other buyout offer emerges, why would Mike Dell and his LBO team increase their current $13.65 offer?
#2 if Dell stock is worth $16, $20 or as some here say, $24 per share, then why haven't any other buyout offers emerged?
#3 is Southeastern Asset Management thinks Dell's $13.65 offer is "woefully inadequate' then why doesn't Southeastern offer $15 and buy the company themselves?
If no other buyout offers emerge, then DELL stockholders
may vote YES to accept the current $13.65.
If stockholders do not cast a vote their shares are automatically registered as "NO' (to the 413.65 offer.
If not enough YES votes are cast, or stockholders choose not to vote, then the 413.65 offer will not pass and DELL shares will likely trade down to the $10 per share price, where it was trading prior to buyout rumors.
The above are the two current options. Hope this helps!
"Voting your proxy" to Southeastern accomplishes nothing for shareholders.
If Southeastern submitted their own buyout proposal, for a higher price than $13.65, that would help DELL shareholders.
Sotheastern (or any other shareholders) whining they want a higher price doesn't do anything. Only a second or third bidder, offering more money, will raise the buyout price. Get it ?
Hope this helps 1
What are you babbling about?
In down real estate markets people lose money.
in down stock markets people lose money.
For some reason this message board is filled with fools who think an investment of money is somehow 'guaranteed" and that the buyer has no risk of financial loss.
Every stock prospectus includes a long list of potential and real risks associated with buying a particular security..