And easy swing trade. I think. Maybe even a hold for a more substantial again. This post won't be as detailed as I usually try to go, but here are the basics...
Dell has gotten hammered lately. However, I like Dell, for the following reasons.
More cheap labor and parts from China. Cost cutting. (Cutting back on labor - closing the Austin, TX plant.)Using more resellers (more of a presence in Wal-mart, etc. I mean, if you can buy a Dell or an Acer, who are you going to go with? Nothing against Acer, they make decent machines, but I like my Dell more.)HUGE stock buyback (apparently ongoing...has it even started yet?). Looks like they started a $10 BILLION dollar buyback in December of 2007. Does anyone have any idea how long it would take to buy back $10 Billion worth of shares? I think the buyback was meant to start years ago, but they had some auditing problems (investigations), and they're just now (in December) resuming the buyback. I don't understand why the buyback resuming didn't get more press, or isn't still getting press. That's a LOT of stock to be bought back, and I figure it will support the stocks price a bit. (Of course, I have been wrong before..)Expanding worldwide market (India, anyone?)Per last CC, they are growing at a slight "premium" to the market. This guy has a decent write up, that seems to agree with a lot of my thoughts. Anyways, the bottom looks like it was around $19. I bought at $19.53, and the stock has been bouncing from the $19.## to $20.##. This looks like a good one to swing trade. I figure the stock buyback could help maintain the price level, which is near yearly lows.
Lots of negative press around Dell right now, but I don't buy it all. I don't think things are as bad as the press is making out.
If the trade doesn't pan out, I can always sell a covered call and make back some of my money.
