Buying Dell on Weakness (DELL)

| About: Dell Inc. (DELL)

Dell, Inc. (NASDAQ:DELL) dropped sharply Friday on a downgrade from Citigroup. Dell reached a new 52 week low of $26.78 at one point.

I think the downgrade presents a great opportunity to purchase a high quality company as the PC sector faces some temporary weakness. Major jumps in PC sales are cyclical and depend either on season or on available software applications and games to take advantage of new hardware.

Microsoft (NASDAQ:MSFT) is set to release Windows Vista sometime in early 2007. Vista should be the largest catalyst to drive PC sales growth in the near-term future. I believe we will see additional drops in DELL as we enter a slow summer season for PC sales and the market waits for the release of Windows Vista. If DELL drops below $27, I will pick up some shares.