Dell Inc. (DELL) missed its earnings expectations today and looks to be expensive even after a 12% drop in stock value. Analysts were looking for 36 cents a share but the company could only earn 31 cents for the previous 3 months.
I have been following Dell (NASDAQ: DELL) since its 1988 IPO. No question, this was a mega-gamechanger company for years. The vision of Michael Dell creating this company from his University of Texas dorm room is inspiring. The dorm room became the new substitute for company creation as the Hewlett-Packard (NYSE: HPQ) garage served beforehand. Dell was a great American success story---but the key here is WAS.
A modest dip to re-test the low made recently is probable. But after that a much larger UP swing is expected. This is a BULLISH quick trade.
Upside Target: >= $25
Time Frame: About One Week Or Less
Upside Profit Expectation: $3, depending on your buy price limit.
To be fair, I also consulted the forecast for this stock provided by ForecastS.com, but the extra interpretation and the somewhat refined target price expectation are based on my own review of the price chart for the stock.
Recap of CNBC's Fast Money, Thursday June 12.
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“Disband Quietly”: Yahoo (YHOO), Microsoft (MSFT), Google (GOOG)
Stocks were down on Thursday, partly on news of dashed hopes for a merger between Microsoft and Yahoo. While Yahoo blamed Microsoft for not accepting its terms, Finerman reminded viewers that she had said the best way to be long Microsoft is to short Yahoo. . Jeff Lindsay of Sanford Bernstein commented pressure is off Microsoft, and it will be interesting to see if Yahoo makes a deal with Google. Guy Adami thinks Yahoo might be a buy at the $22 mark, and Macke says
5/30 - "FBR focused on Dell's margin expansion, noting how the company had trimmed opex from 12.9% to 12.4% year-over-year. FBR thinks Dell can build on this improvement:
'First, we expect several dozen new notebook models to launch over the next three quarters, which have been redesigned from the ground up for cost competitiveness by market segment.'
'Second, we expect Dell to save significant logistics and facilities costs as it begins shipping more products directly from suppliers to customers. We expect savings to begin showing up here next quarter, though it may take a year or more t...
5/30 - "Dell reported unit share gains (total units up 22%) in all geographies, driven they believe by aggressive pricing and at the expense of margin. Assuming component pricing increases somewhat (as most companies are now expecting) and emerging markets sales continue to increase, the firm believes gross margin will be difficult to maintain/or improve."
"...they think significant, positive quarterly earnings surprises will be required to provide much upside to the share price. With exposure to the US, potential for a slowdown overseas, need to fund the enterprise leasing business (poten...
5/30 -
"Dell's server division reported 4% higher sales on 21% higher unit volume...The other cash cow in Dell's barn is the laptop sector, where 43% year-over-year unit growth produced 22% higher sales...According to the latest available report from DisplaySearch, another independent market researcher, that's better than the 41% unit growth in the entire notebook market. It's also faster than market leader HP and its 42% annual increase, by the skin of Dell's teeth."
"Dell's focus remains on growing units faster than the industry," says the press release, which then goes on to list seco...
5/30 - "One thing I liked about the quarter was that operational cash flow was much healthier this time around. Last year, Dell needed to use $99 million to fund operations; this year, Dell booked $143 million in cash from operations. Awesome improvement. And here's something else shareholders should look positively on: management apparently wants to focus on having operational cash flow exceed net income."
"So, this was a decent quarter. Am I buying? Well... not exactly. Personally, if I want to play personal computers, I'm probably more likely to look at either Hewlett-Packard (NYSE: HPQ...
5/30 - "...the Street is still sharply split on the stock. The bulls think the turnaround at the company is just getting underway, with recent cost-cutting just beginning to pay off. But the the bears remain skeptical about how successful the turnaround plan will be, and advise steering to competitors Apple (AAPL) and Hewlett-Packared (HPQ) for exposure to the PC market."
"Brent Bracelin, Pacific Crest: Maintains his Outperform rating, with price target now $30, up from $28. “We continue to favor Del over HPQ based on our increasing confidence in the company’s turnaround and improving fund...
"Dell Computer is one of the largest retail computer manufactures in the world. The company supplies businesses and consumers with PC computers, printers, and other peripherals.
"For years, we've watched Michael Dell's company languish, as a slowdown in PC demand combined with a saturation of the PC market caused DELL shares to fall more than 50%. Now, af
I am glad the market in general has been giving such a doom and gloom view on Dell (DELL).<!----> Its stock price halved from $40 to $20 just 3 years ago. I think it’s great because it simply gives me the opportunity to buy into a good, if not great, company like Dell.
I've received a few chuckles for investment directions I've suggested in the past, but if you care to review a couple of my previous generalities, I believe that my record has held up fairly well.
I submit for approval the following investment angles for the balance of 2008 and possibly beyond:
Have I suggested investments in water holdings? Yes, I do believe that I have. I believe that going long in wat...
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About Dell Inc
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I have been following 
I've received a few chuckles for investment directions I've suggested in the past, but if you care to review a couple of my previous generalities, 
