For those of you who can handle long, detailed, number discussions, this is an excellent article on why, even at this price, Dell is no bargain.
http://philtown.typepad.com/phil_towns_blog/2005/11/calculating_del.html#more
I will say though, that if you apply this logic to almost any stock, there are very few that would stand up to the test.
There is a difference between buy and hold investing (which bores me to tears) and my hit & run style and you have decide what is best for you but, while I may agree that Dell is becoming a commodity and should not get a better p/e than BBY or even WMT for that matter, I also believe that at 27% less than it was in August people will buy it for Xmas!
Fundamentals shmundamentals I say! I’m looking at the January $27.50 for $2.90 (.65 premium) and sell it for $3.60 and go buy something nice (maybe a Dell) with the profits. Just remember, this is not a good stock so I’m setting a tight stop, around $2.50, and hope nobody notices this company is in trouble before I get out!
