Dell is Back On Track

Dell passed our price target of $28 this morning so we sold our shares. As we hypothesized, Michael Dell has made the changes necessary to revitalize the stock, the most important of these changes being the 10% reduction in workforce announced yesterday. Although Dell appears to be back on track, at current prices Dell shares no longer have the compelling valuation that they did a few months ago.

Suggested Trades:

SELL DELL near $28.15

DELL 1-yr. chart:

Related Articles: Goldman, Deutsche Bank Remain Bullish On Dell; Dell Impresses In Report, But Now Appears Fully Valued; Round Two From Round Rock: Dell's New Layoffs and Stock Price Outlook; Dell Pleasantly Surprises: Still Can't Trust the Numbers