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I have Dell in my Portfolio for several years. Shoulf hold or sell.
It is not yielding and not producing any positive results.
Answers
421 points
WayneMulligan answered 2 years ago …
The question you need to ask here - and with any future investment decision like this - is what was your original reason behind buying Dell? Does that reason still stand? So if you bought Dell because they were the fastest growing, largest PC manufacturer in the country, then your thesis would be flawed now. Or if you bought them because they were the low-cost producer and had superior customer service which increased customer lifetime value (also increasing ROIC) then that thesis would no longer stand as well. Bottom line - if your original reason for own the stock is no longer valid, then it's likely a sell.
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114 points
SandyRN answered 2 years ago …
Just adding my 2 cents. I invested in Dell at $19 and sold at its 52-week high a couple months ago. I've continued to follow it because I'm starting to see more institutions and value players become attracted to it again. What I would do prior to selling is check the discussion groups that pertain directly to those buying and selling DELL such as the Motley Fool Discussion boards or their CAPS board (which you can find listed in the MSN money page. Can the money you have in DELL be put to better use on something better right now or is your thesis and timeline sound enough to to bet on DELL as a value pick with future potential. Do you need a capital loss to offset some gains for your taxes this year? That could also be a factor. My personal opionion about DELL is that although it currently is in the dumps, Michael Dell's return is helping it rebound but it could be a long time before that happens. They are cash rich and sales are increasing overseas. I think it's starting to get attractive for value players again. (But value players take a lot of pain before they make their killing). Personally, I might be nibbling again if it drops to about $22 in this market and continues on its current improvement trend. (I tend to go for mostly long term investments, though and only sell if I see my thesis getting weak.)
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4085 points
EthanR answered 2 years ago …
Dell's business model seems to be changing, and they are now going to be sold in retail stores like Best Buy, not just on line anymore. Unlike Compaq and Gateway, you hardly ever hear people complain about a Dell crashing or not working well. Most of the complaints used to be about the costly delivery charges when you order on line, or perhaps about bad customer service and rude attempts at upsizing the consumer over the phone. If you can buy them at your local retail store now, I would think that would really promote sales over the next few years. So I vote "hold", and I think you will see a return to $30 at some not too distant point.
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