Dell (DELL)

Re: Dell (DELL)

Postby iam802 » Sat Apr 07, 2012 10:42 am

Dell has acquire more companies recently (latest additions includes : Clerity and Make)

http://www.wired.com/wiredenterprise/2012/04/dell-make


Rather than reading on the acquisition, here's a dated article from Wharton that highlights Dell's challenges and the transformation that they are going through.

http://knowledge.wharton.upenn.edu/arti ... cleid=2584

Note:
- hiring of M&A guy from IBM; approach to acquisition is similar in thoughts process as that of IBM
- $1B bond issued couple of years back for M&A purpose (start of transformation)
- cost advantage that Dell has over competitors drop from 8% to 2% (decline of manufacturing and supply chain efficiencies)
- threat of iPad and the possible drop in PC sales (change in consumption)
- growth in service revenue, commodization of service offerings (growth in service revenue and improved margins)
1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

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Re: Dell (DELL)

Postby winston » Wed May 23, 2012 6:35 am

Down 12% after hours ...
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Dell (DELL)

Postby iam802 » Tue Jan 15, 2013 10:38 am

Clear sign that this is the end of the PC OEM era.

---
Dell Said to Be in Buyout Talks With Private-Equity Firms

http://www.bloomberg.com/news/2013-01-1 ... firms.html

Dell Inc. (DELL), the personal-computer maker that lost almost a third of its value last year, is in buyout talks with private-equity firms, two people with knowledge of the matter said. The shares surged.

The company is discussing going private with TPG Capital and Silver Lake, said one of the people, who asked not to be identified because the talks are private. A deal could be announced as soon as this week, one person said. The discussions could fall apart because firms may not be able to line up the needed financing or resolve how to exit the investment in the future, the people said.

Several large banks have been contacted about financing an offer, one of the people said. The computer maker had a market value of $18.9 billion as of Jan. 11.

Taking the company private could help Dell, the third- largest PC maker, accelerate efforts to revive growth and cope with competition without quarter-by-quarter scrutiny from public shareholders. Chief Executive Officer Michael Dell, 47, has been using acquisitions to sell more products to businesses as consumers shun PCs in favor of tablets and smartphones, including devices that run Apple Inc. and Google Inc. software.

“The stock has not done much, and he’s under pressure to boost numbers,” said Abhey Lamba, an analyst at Mizuho Securities USA Inc. “He wants to de-emphasize about two-thirds of his business, and that’s a hard strategy to push because it would mean overall revenue will shrink.”

Stock, Bonds

Dell stock jumped 13 percent after Bloomberg reported the talks, closing at $12.29 in New York. Dell’s bonds fell to the lowest level in 19 months, while the cost of protecting the company’s debt from losses, as reflected in five-year credit- default swaps, surged.

David Frink, a spokesman for Round Rock, Texas-based Dell, declined to comment.

Michael Dell founded his namesake company at the age of 19 in 1984 in his University of Texas dorm room with $1,000. He led it to the top of the industry by cobbling together PCs from off- the-shelf parts and delivering them directly to consumers at a lower cost than rivals, including International Business Machines Corp. Dell lost the top spot to Hewlett-Packard Co. in 2006 and more recently has struggled to contend with new competitors, including Apple, in the consumer market.

The CEO owns 15.7 percent of the company, making it easier for firms to put together equity financing for the deal, one of the people said.

Billionaire’s Funds

Michael Dell has a net worth of $13.7 billion and ranks 65 on the Bloomberg Billionaires Index. MSD Capital LP, his investment-management firm, oversees about $9 billion, according to Bloomberg estimates. Dell could use part of that wealth to help finance the transaction.

The company’s enterprise value of $19.1 billion is 4.4 times earnings before interest, taxes, depreciation and amortization for the last 12 months, according to data compiled by Bloomberg. That’s a lower valuation than every computer- hardware maker larger than $1 billion, except Hewlett-Packard Co. (HPQ), which has a multiple of 3.5, the data show.

Based on Dell’s market value as of Jan. 11, a deal could be at least the largest buyout of a technology company since 2007, when KKR & Co. bought First Data Corp. for more than $25 billion, according to data compiled by Bloomberg. It could also be the largest acquisition in the computer industry since Hewlett-Packard bought Compaq Computer Corp. for about $19 billion in 2002, the data show.

News of the buyout talks sent ripples across the technology industry, fueling gains in the shares of Hewlett-Packard, Lexmark International Inc. (LXK) and Western Digital Corp. (WDC)

Scarce Buyouts

Large leveraged buyouts have been scarce since the financial crisis. Other technology companies, including disk- drive maker Seagate Technology Plc (STX), have attempted to go private and had the talks fall through over valuations or difficulty in financing deals.

Goldman Sachs Group Inc. upgraded the stock to buy in December, saying that Dell’s net cash balance presents an opportunity for a leveraged buyout.

While demand for PCs has declined, Dell’s net cash balance of $5.15 billion provides “some downside buffer as it produces opportunity for an LBO or levered recap under the right conditions,” Bill Shope, an analyst at Goldman Sachs, wrote in the report. “Dell has become an attractive deep value play and we would be buyers of the stock.”

Michael Dell, who retook the CEO position in 2007, said in 2010 he had considered taking the company private.

Dell’s $400 million of 4.625 percent notes due April 2021 declined 6.64 cents to 102.2 cents on the dollar to yield 4.31 percent as of 4:27 p.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. That’s the lowest level for the debt since June 2, 2011.

Five-year credit-default swaps on Dell’s debt soared 104 basis points to 309 basis points as of 2:41 p.m. in New York, according to data provider CMA, which is owned by McGraw-Hill Cos. and compiles prices quoted by dealers in the privately negotiated market.
1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

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Re: Dell (DELL)

Postby iam802 » Wed Jan 23, 2013 7:19 am

Dell Said to Near Buyout as Microsoft Talks Deal Financing

http://www.bloomberg.com/news/2013-01-2 ... ncing.html

Dell Inc. (DELL) is getting closer to clinching a leveraged buyout with Silver Lake Management LLC, and Microsoft Corp. (MSFT) is planning to provide part of the funding, people with knowledge of the matter said.

Silver Lake and Dell are negotiating a price in the range of $13.50 to $14.25 a share, said one of the people, who asked not to be named because the talks are private. Microsoft is discussing contributing about $2 billion for the deal, which could be announced this week, the person said.

Microsoft stands to benefit from propping up Dell, one of its largest partners in selling personal computers that run Windows software. Both companies are racing to make up for an industrywide slump by working together on tablets, a market led by Apple Inc. (AAPL) and Google Inc. (GOOG) Microsoft could also use Dell’s help selling to business customers.

For Microsoft to continue to be healthy, it needs strong enterprise partners,” said Tim Bajarin, founder of technology consulting firm Creative Strategies Inc.

Gemma Hart, a spokeswoman for Silver Lake, declined to comment, as did Frank Shaw, a spokesman for Redmond, Washington- based Microsoft, and David Frink, a spokesman for Round Rock, Texas-based Dell.

If the deal isn’t completed this week, that would indicate that price has become an obstacle, and that the transaction is at risk of falling through, one of the people said. CNBC earlier reported that Microsoft plans to help finance the deal.

Tablet Strategy

Dell is just one of a handful of vendors selling a tablet machine with Windows RT, a version of Microsoft’s operating system for chips running ARM Holdings Plc (ARM)’s technology. Dell will also begin shipping a separate tablet using the main operating system, Windows 8, later this month.

Microsoft needs the support of PC makers as Apple, Amazon.com Inc. and Samsung Electronics Co. lure consumers with tablet devices. Microsoft has also shifted its longstanding tactic by competing with its own partners in selling a tablet machine of its own, called Surface.

Microsoft hasn’t commented on Surface sales, leading some analysts to speculate that the machine may not be selling well. Windows 8 also had a disappointing debut, said Todd Bradley, executive vice president at the largest PC maker, Hewlett- Packard Co.

PC Slump

Computer makers and Microsoft are facing a prolonged downturn as PC shipments are forecast to drop for the second year in a row in 2013. They fell 4 percent in 2012 and will slide a further 1.5 percent this year, JPMorgan analysts estimate. Tablet sales rose 72 percent last year and will surge 54 percent this year, JPMorgan forecasts.

This isn’t the first time Microsoft has considered bolstering a potential Silver Lake deal. In 2011, the software maker offered to help fund an offer by Silver Lake and others to acquire a minority stake in Yahoo! Inc., people familiar with the matter said at the time. The deal never materialized.

A Microsoft investment in Dell could make it difficult for the software company to work with other PC makers, according to Bajarin.

“It would complicate their relationship with their current partners, but it could potentially shore up a partner that is losing ground to Lenovo and HP,” he said.

Microsoft fell less than 1 percent to $27.15 at the close in New York. Dell rose 2.2 percent to $13.12.

..
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2. The trend will END but I don't know WHEN.

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Re: Dell (DELL)

Postby investar » Fri Dec 27, 2019 4:05 am

DELL Technologies - not the same company but same ticker so OK

https://investors.delltechnologies.com/ ... 5f17ab75b9

wiki:
Dell Technologies Inc. is an American multinational technology company headquartered in Round Rock, Texas. It was formed as a result of the September 2016 merger of Dell and EMC Corporation (which later became Dell EMC).

Dell's products include personal computers, servers, smartphones, televisions, computer software, computer security and network security, as well as information security services. Dell ranked 35th on the 2018 Fortune 500 rankings of the largest United States corporations by total revenue.

Approximately 50% of the company's revenue is derived in the United States.

Dell operates under 2 divisions as follows:

Dell Client Solutions Group (48% of fiscal 2019 revenues) – produces desktop PCs, notebooks, tablets, and peripherals, such as monitors, printers and projectors under the Dell brand name
Dell EMC Infrastructure Solutions Group (41% of fiscal 2019 revenues) – storage solutions
Dell also owns separate businesses: VMware, RSA Security, Pivotal Software, Secureworks, Virtustream, and Dell Boomi



So DELL owns around 80% of VMWare.
And DELL is considering to buy out the remaining 13% they don't own yet in SCWX.
But the debt is also gigantic, hence the forward p/e of just 8
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Re: Dell (DELL)

Postby investar » Thu Feb 20, 2020 3:30 am

Dell sells RSA (older cybersecurity firm that came with EMC) for 2.1B:

https://techcrunch.com/2020/02/18/dell- ... r-over-2b/

More money to buy SCWX outright?
Probably a good idea (here at 15.5$) and moment (earnings due March 6th unconfirmed) to build a position in SCWX
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Re: Dell (DELL)

Postby behappyalways » Fri May 29, 2020 5:00 pm

Dell says COVID-19 helped sales in some sectors, stock jumps more than 7% after earnings
https://www.marketwatch.com/story/dell- ... ck_seemore
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Re: Dell (DELL)

Postby winston » Thu Feb 04, 2021 10:41 pm

not vested

THE REMOTE WORKFORCE IS A BOON FOR THIS TECH GIANT

Today's company provides the technology work-from-home folks depend on...

As the COVID-19 pandemic drags on into 2021, working remotely is becoming the new norm. Folks are upgrading their home offices with faster Internet, new furniture, and computers that help them get their work done. And the companies that sell these remote-work necessities are doing tremendously. Look at today's example...

Dell Technologies (DELL) is one of the largest tech companies in the world. You likely know Dell for its personal laptops and desktop computers... but it also sells servers and software that help entire businesses operate online.

Throughout the pandemic, folks have been snapping up Dell's products and services. In the most recent quarter, its Client Solutions segment – which includes Dell PCs, notebooks, and tablets – saw record sales of $12.3 billion.

As you can see, DELL shares have rebounded more than 160% from their mid-March low – and they recently hit an all-time high. As long as COVID-19 keeps folks working remotely, DELL should remain on an uptrend...

Source: Daily Wealth
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Re: Dell (DELL)

Postby behappyalways » Wed Feb 08, 2023 7:15 pm

Dell Cuts 6,650 Jobs Due To "Challenging Global Economic Environment"
https://www.zerohedge.com/markets/dell- ... nvironment
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