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Sorry, I deleted when I was editing the grammer. I think the price is too low relative to the fundamentals of the business. High returns on capital, decent 10
by hodder 14y ago
Sorry, I deleted when I was editing the grammer. I think the price is too low relative to the fundamentals of the business. High returns on capital, decent 10/5 year average revenue growth. Decent transitioning taking place. I think it is simply cheap on a FCF basis at 13.65. It appears Dell agrees with me.
I understand the market wasn't pricing it that way in the past few months, but I am not one who believes in efficient markets. My intrinsic value estimate is higher than 13.65, and far higher than the surely oversold Nov price. You are probably correct though, the price premium is probably enough to entice a majority vote. I just feel as though it justifies a higher bid.
http://www.gurufocus.com/financials.php?symbol=dell http://www.gurufocus.com/financials.php?symbol=dell