Dell going private?

[Midpack]

I don't hold individual stocks anymore but this surprised me, though I know it shouldn't have. It's clear the glory days for PCs ended years ago, but I remember when Microsoft, Dell and them like were almost sure bets (I probably wouldn't be retired if not for buying MSFT, INTC & CSCO early). I remember how many magazine covers Michael Dell was on as a 'wunderkind.'

Time marches on...it's a Facebook, Amazon, Apple, Google world for now.

What

 

[MichaelB]

Dell is an ATM. from the NYT

It has spent more money on share repurchases than it earned throughout its life as a public company. Most of those repurchases were at prices well above current levels.

Here’s the breakdown so far: Cash paid by the company to shareholders who were bailing out: $39.7 billion. Cash paid in dividends to shareholders who chose to hold on to their shares: $139 million. Current market value of the company: about $22 billion. http://www.nytimes.com/2013/01/18/b...options.html?ref=business&pagewanted=all&_r=0

Looks like Dell spent most of its cash buying back shares, some of which would be stock options.

 

[Brett_Cameron]

Wow.

 

[Midpack]

Wow.

+1. Much worse than I realized. Guess I may own my last Dell PC, in a string of many...

 

[MichaelB]

+1. Much worse than I realized. Guess I may own my last Dell PC, in a string of many...

Why would you stop buying Dell computers? This doesn't mean they will change.

 

[Midpack]

Why would you stop buying Dell computers? This doesn't mean they will change.

Just a frivolous comment really. It's debatable if I'll buy another desktop PC again as fast as mobile is taking over...

 

[MichaelB]

Just a frivolous comment really. It's debatable if I'll buy another desktop PC again as fast as mobile is taking over...

Got it. The desktop business does look pretty grim, doesn't it.

 

[ERD50]

Reminds me of this comment from Michael Dell, Oct 6, 1997:

Dell: Apple should close shop - CNET News

And at the Gartner Symposium and ITxpo97 here today, the CEO of competitor Dell Computer added his voice to the chorus when asked what could be done to fix the Mac maker. His solution was a drastic one.

"What would I do? I'd shut it down and give the money back to the shareholders," Michael Dell said before a crowd of several thousand IT executives.

Compare to this chart (hope the link to Google finance works):

Apple Inc.: NASDAQ:AAPL quotes & news - Google Finance

Though Dell did outperform Apple for quite a few years, AAPL stock did well and was solidly positive just months after that comment. I was buying back then, but didn't hold for that 40,000% return! But I did well, I'm happy about that.

And I added ~ $400 on that single put sale this week. Small potatoes in the big picture, but $400 in a few days on a 'testosterone play', not bad.

-ERD50

 

[oldtrig]

I watch these young people checking the internet on phones. Heck, I have a hard time seeing my screen. I will still buy a desktop.

 

[Midpack]

I watch these young people checking the internet on phones. Heck, I have a hard time seeing my screen. I will still buy a desktop.

Of course you can project an iPhone (Android too I suspect) display to your flat screen TV hard wired or wirelessly, that capability already exists for the cost of a cable or $99 Apple TV among other ways. YMMV

 

[KMyer]

I decided to deviate from my buy and hold strategy for equities after reading this thread. I placed an order to sell the DELL stock that I purchased just three weeks ago on December 27th.

The old expression "Pigs get fat, hogs get slaughtered" is ringing in my ears. It is nice when "Lady Luck" is your friend.

It does seem a little weird though sitting here typing this message on my Dell Computer.

 

[Hamlet]

I bought a new computer a year or so ago, and there really didn't seem to be much reason to choose a desktop over a laptop.

We plugged the new laptop into our nice big flatscreen monitor and were good to go.

The price points were close enough that it just didn't make any sense not to get the laptop.

I watch these young people checking the internet on phones. Heck, I have a hard time seeing my screen. I will still buy a desktop.

 

[ziggy29]

I bought a new computer a year or so ago, and there really didn't seem to be much reason to choose a desktop over a laptop.

We plugged the new laptop into our nice big flatscreen monitor and were good to go.

The price points were close enough that it just didn't make any sense not to get the laptop.

If you're not a hard core gamer or a graphics/video professional, the horsepower in desktop machines is often overkill for most folks these days, and as you said the price difference is not all that much anymore for the midrange systems. The average consumer (at least until the next tech revolution) doesn't much need Moore's Law at this point.

 

[HighRoller]

I bought a new computer a year or so ago, and there really didn't seem to be much reason to choose a desktop over a laptop.

We plugged the new laptop into our nice big flatscreen monitor and were good to go.

The price points were close enough that it just didn't make any sense not to get the laptop.

I switched to all laptops several years ago. I only have one that I use with an external mouse, keyboard and large monitor "sometimes" and even that's becoming rare to setup unless I'm doing a lot of spreadsheet work.