Most technology companies have made their founders and early investors very wealthy. However, this is not always the case for all tech stocks because, historically, some IPOs in the technology sector have also diminished the wealth of many shareholders.
Dell (DELL) resembles the former description as it has remained a leading technology company and created wealth for countless investors around the globe. Nonetheless, the stock has been on a bearish trend since 2005, after temporarily recovering from the dot-com bubble in 2000. But Dell has recently been eyeing new markets, such application recovery software, and, based on my analysis below, its stock appears undervalued. Is it an indication of the perfect time to step in and buy shares? Let?s find out now.
Dell is a leading technology corporation offering mobility products, desktop personal computers (PCS), software and peripherals, servers and networking products, storage and services. However, this may soon change because Dell has recently talked about focusing more on services, software, hardware and servers as its personal computer unit keeps slumping. Management is seeking to reposition the company ? la IBM (IBM) to adjust to a changing environment in the highly competitive computer industry. Furthermore, Dell?s strategy intends to focus on more lucrative segments such as smaller businesses.It has a market cap of $31.20 billion and is currently trading near its 52-week high of $18.36. The first thing I noticed when I looked at the balance sheet for the latest annual data is the $13.85 billion in cash and cash equivalents and the $6.39 billion in long term debt the company has, a good indication the company is not using debt to run day-to-day operations. To continue reading, click here.
Source: http://vatalyst.com/2012/03/12/will-dell-remain-stagnant-in-2012/
geoffrey mutai fred davis fred davis fracking fracking drosselmeyer drosselmeyer
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