Use access key #2 to skip to page content.
$23.81 0.05 (0.21%)
7/23/2008 4:00 PM

Dell, Inc. (DELL)

CAPS Rating:
**

Provider of products and services worldwide that enable customers to build their information technology and Internet infrastructures; offers a range of enterprise systems, client systems, printing and imaging systems, software and peripherals.

View All Commentary (DELL)

Recs

6

Avatar kahunacfa (< 20) Submitted: 2/13/08 10:52 PM : Underperform Start Price: $20.30 DELL Score: -13.00

Dell operates in a very competitive market. The company produces only average quality products in a market where the company is not gaining market share.





Management is poor, unstable, and unfocused. The stock is not only a SELL it is a good Short.





I compute an Intrinsic Value for Dell stock of no more than $12-$14 per share. The stock will under-perform stronger competitors such as Hewlett Packard, Acer and Others.





My pick in the PC sector remains Apple, - a company with Great Management and vision.





Kahuna,CFA


Report this Post Replies: 3 | Reply

Avatar valunvesthere (57.41) Submitted: 2/15/08 1:36 AM

Recs: 0 | Rec This

Hello kahunacfa,

I disagree with you that Dell produces average quality products. I find Dell, Acer and others all have about same workmanship and quality. The old rule stays true, "You get what you pay for!"

I find Dell, Acer, and Lenovo have put alot of thought in building desk tops and laptops. The key board, internal hardware, functions, ports, drives and etc. are well laid out giving the users a feeling that these companies designed/engineered/built it for the individual. Also Asus, Averatec, and MSI are worth noting. Unlike Hewlett Packard my personal experience is that the layout seems to be designed /engineered /built to be massed produce. Giving the user the feeling they've been assimulated to be as one in the borg colony.

All in all, flooding the market with desk tops and notebooks at low prices is not a good business strategy. In the short term it may work but in the long term consumers will figure it out. My QUESTION; I wonder which company consistantly annually flood big box retailers with refurbished products during the final week of December?

From Valunvesthere.

P.S. I borrowed the borg sample from Star Trek.

Report this Post Reply

Avatar valunvesthere (57.41) Submitted: 2/15/08 1:50 AM

Recs: 0 | Rec This

Hello Kahunacfa,

About Apple, the last time I've checked Apple is 5% and PC is 95% of the global market.

Also the last time I've checked Apple made most of their money not from their core business (computers), but from Ipods and Iphones. Thus giving me reason to believe they're losing to PC's in the computer business and moved on to new ventures.

Finally to solidify my opinion Apple has broken tradition of strictly MacOS to now offering Apple/Mac users WindowsOS getting into the PC ballpark which the other PC manufacturers are way ahead in the bottom of the 9th inning.

From Valunvesthere.

Report this Post Reply

Avatar chuchunga (51.48) Submitted: 4/24/08 9:38 AM

Recs: 0 | Rec This

Dell is in an interesting position. The management is poor, the PC market has no real margin line anymore, and Windows Vista have really put a deterrent on the market for PCs. Dell needs a clean out top to bottom if they want to make the 180 degree change and put out a new vision. Dell can put out computers as well as any other company but they lack the ability to provide necessary services which is where all the margin comes from. If you look recently, probably one of their best moves was to put Dell models into Best Buy stores. Best Buy has the ability to provide better service through their Geek Squad branding versus Dell's third party certified contractors. Dell needs to bring their brand under control again to get rid of the persona of average machines. HP, Lenovo, and even Apple protect their brand name extremely well, something Dell doesn't do as much. Walk into any service center and you will generally see a tremendous amount of Dell computers. This shows they sell well, have a strong brand name, BUT doesn't protect the quality of their product.

Apple has the right idea by catering to a certain market. Their iPod brand has made their laptops and desktop models more attractive, especially with prices being within now 100 - 200$ of a comparable PC. Apple with the ability to run both Operating Systems does become more attractice as Windows Vista has gotten such negative reviews. The SP1 for Vista is expansive with a lot of fixes and updates based off of customer complaints. Atleast with Mac OS they know they are dealing with something new and customers are more understanding while learning a new OS. If you noticed, Dell reverted to offering Windows XP Pro even after Vista came out based on complaints about compatibility and the like. What makes this an even bigger is that this generation of technology is also being under used as all new computers being sold today are mainly dual core processors and without Mac OS or Vista 64, customers don't even get their monies worth meaning upgrading down the road may be more viable or may make it harder for higher end machines to sell and consumer sees less value which will again force price drops and cuts in margin.

Report this Post Reply

Featured Broker Partners