Tuesday, March 19, 2013

Dell: Take The Premium And Run


The secular decline of the PC market should make any investor question why Dell (DELL) should obtain a premium valuation to the LBO offer of $13.65. The company has limited traction in the mobile sectors of smartphones and tablets, suggesting the business is only getting worse, not better.

The stock should've been hammered Friday on the report by David Faber on CNBC suggesting the operating income forecasts used to value the LBO will be cut. The stock though actually rose for the day to close at $14.31 and above the offer.

Read the full article at Seeking Alpha.


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