If you've been holding Dell for the past year, you've seen it drop from over 40 to the current 29. And you've recently had to endure a barrage of analysts and pundits decrying its revenues woes and speculating that the company might never recover. Well, here's a contrarian's case for Dell from a hedge fund manager who is still long the stock -- it's well argued and worth considering:
Over the last few days, I’ve gotten about 20 gabillion e-mails asking me why I’m not panicking over Dell. The easy answer is that panicking won’t make me any money. (I've tried it.) The other reason I’m not panicking is that there’s no reason to panic.
The Major Concern right now is Dell’s slowing sales growth. For the last several quarters Dell’s sales growth has slowed down (or “decelerated