Could Dell Die?

[Bevo Incognito]

The Link

 

[Vol Horn 4 Life]

The way they treat suppliers, employees (temp employee focus) and customers (after the purchase) makes them deserve to die a long, slow, painful death. I refuse to buy anything with the crooked E in it.

 

[Dionysus]

They should shut it down and give the money to the shareholders.

 

[Burnt Orange Bevo]

*Every* PC maker, not just Dell, is feeling the effects of the big shift to mobile computing devices (i.e. tablets and smartphones). HP and Intel (and other companies) are worrying about it, too. Dell is far from being the ugliest pig in the pen.

 

[Mr. Deez]

In reply to:

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[zork]

Dell share price is down ~50% from 18.36 ish to 8.86(last 12 month high and low). Dell lost 7% of the share price on Friday when the quarterly number missed by a .01$ per share in earnings.

The Dell PE ratio is approaching 6 I believe with expected earnings for the coming 12 months to be about 1.39$ per share.

The Link

Where would Apple stock be with an 8 PE(much less a 5ish or 6ish PE that HPQ and Dell are seeing)? Even with a 200$ price drop per share(700 ish to 500 ish) I believe Apple is above 10 PE. That might be rich in this higher taxes are coming, greater uncertainty business climate in the USA that is continuing? The short speculators are brutal these days and getting much smarter.

 

[Bayerithe]

hope not ... i buy all my servers from them.

 

[Hookem123]

Maybe so, then all those queer people in Austin who voted for Obama can go back to California where they belong.

 

[DFWAg]

Dell won't die because a lot of its revenue lines are for items that are still in demand (laptops, industry standard servers, memory) but almost all of these are highly competitive markets with commodity structures. Dell suffers mostly from a huge chunk of revenue from desktop PCs.

They book a nice revenue slice from services and have been acquiring into the services space and picking up higher technology applications.

The company won't die but it won't be a growth story until it re-balances its business model towards more software and services.

Also, the company has a huge chunk of cash on its balance sheet.

 

[Dionysus]

HP could fade. I hear they are having some issues.

 

[DFWAg]

Criminal Stupidity is their issue. Those clowns have burned through nearly $30 Billion in shareholder value through bad acquisitions.

 

[Dionysus]

I don’t recall the details on HP but I thought I read that their printer business is the only area that is still propping up revenues. They do make good printers, but printing is a bit of a dying technology anyway. Commodity PCs will be around for a while but that’s a low-margin business that few want to be in anymore.

I work in IT and these are extremely interesting times we live in. Big changes are afoot. It seems clear that mobile and cloud services are here to stay — the platforms (desktop/laptop/tablet/smartphone) will continue to evolve but ubiquitous connectivity and data are game-changing innovations.

 

[hornpharmd]

A company cannot die

 

[zork]

Dell aint dead yet. Will they go private? I'm guessing it will be too expensive. Nice rally from the sub 9$ level.