Dell going private

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I could see the PC market splitting between business users and enthusiast users, the latter of which will probably shun premades, even as they do now, in favor of building their own.

lonestarguy said:   jd2010 said:   (13.65-13.39)/13.65 = ~2% gain

Itll take 6 months to close, minus commissions, means youll end up with about 3.5% IRR. Thats why its not at 13.65


You forgot dividends. They should be added to buy/sell calculations.


Speaking of dividends, looks like they will continue to pay them until the deal closes. Details here.

Why should anybody invest in a company that has only generic products and has to compete against its own suppliers?

Venturion said:    Nah.. I took the profit from trading 2,500+ oz and turned it into 530 H.P.

Pics?

Dell is much more than just a PC company nowadays. More than 50% of their gross profit comes from business services rather than PC sales.

With many companies already interested in taking Dell private, a price floor is already set where they are negotiating now. And I believe the price is much more likely to rise rather than parties pulling from the buyout and the price subsequently falling.

Dell shareholders also may not be pleased with certain deals and may be able to push for a higher buyout price. The risk/reward in this scenario seems very favorable in my opinion.

Tablets are cannibalizing the PC market big time. Apple's last quarterly results showed a big decline in Mac sales even though Mac market share is not declining. While I agree that desktops & laptops are not going away, there are lots of cases where tablets make a lot of sense over a desktop/laptop.

Anybody knows what happens if I sell puts with strike of 12 expiring Jan 2015?

Looks like I could get 0.28 cents so if I sell 100 contracts, i get $2800. What happens if Dell goes private? Do i just keep my money and the option expires prematurely?

I've worked with MSD Capital (Michael & Susan Dell family office) and they always make prudent financial decisions. I'd imagine this is another one...

Kudos to Dell! Once again innovating and hopefully setting the trend. *DEEP BREATH* I foresee more companies going private as they realize that the wall street corporate model of instant profits without figuring in external or long term costs is unsustainable and increasingly unpopular.

Its great to see a grand american company like Dell shake off the shackles of share holders and their short term profit based priorities in order to accomplish something long term. What a great move and I hope other companies are paying attention.

Cheers

Largest shareholder (7.5%) after Michael Dell not happy with the deal : Dell shareholder Southeastern unhappy with buyout

Will be interesting to see if the stock moves up from here on speculation that they will have to sweeten the offer.

winter said:   Largest shareholder (7.5%) after Michael Dell not happy with the deal : Dell shareholder Southeastern unhappy with buyout

Will be interesting to see if the stock moves up from here on speculation that they will have to sweeten the offer.


They will just feed him crumbs to shut him up. That is what he actually wanted.

This POS was trading below $10 not too far ago when this deal start cooking up.

I picked up couple hundred shares around $10 per. I was hoping they would build on the enterprise side of the business. But I also can't complain about the gain I. Only a month. I think I bought over Christmas if I remember.

rechtien said:   I picked up couple hundred shares around $10 per. I was hoping they would build on the enterprise side of the business. But I also can't complain about the gain I. Only a month. I think I bought over Christmas if I remember.
Which area of enterprise business were you referring to? The homepages of HP, Dell, and IBM seem to imply how much they focus on enterprise business.
Dell's homepage has predominately PC and PC accessories. HP has a desktop PC, scroll right you see a printer, and further right you see a large enterprise server.
IBM's home page: smarter planet--> lead to business solutions, Cloud, Mobility...,etc.

After this week's Barrons article, this seems solid.
- Right time to buy, -30% appreciation over past 12 months
- $5B in cash outstanding on $23B market cap
- Underwritten LBO annualized return is 30% assuming no increase in OP earnings
- Current P/E is 8



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