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Dell (DELL) has warned that its operating profit will come in at $3B in FY 2014, down from a...

Dell (DELL) has warned that its operating profit will come in at $3B in FY 2014, down from a previous internal forecast of up to $5.6B, while its revenue will fall by $10B over four years. The dire outlook came in a 274-page preliminary proxy statement that seeks to persuade investors why Michael Dell's $13.65/share offer, which would take the company private, is better than higher bids from Blackstone (BX) and Carl Icahn, which would keep the firm public.
Comments (11)
  • Chris DeMuth Jr.
    , contributor
    Comments (3890) | Send Message
     
    They crafted this document extremely well -- it is exactly what one would want to present to shareholders when you are trying to get them to sell: "I'm sorry about this lousy company you got there; here, let me help take it off of your hands"...
    31 Mar 2013, 07:22 AM Reply Like
  • blueice
    , contributor
    Comments (2959) | Send Message
     
    Excellent point, Mr DeMuth...If this is indeed the bleak case then manage needs to be boxed and shipped...

     

    Free shipping of course...
    31 Mar 2013, 09:34 AM Reply Like
  • texaswiz says
    , contributor
    Comments (56) | Send Message
     
    BOHICA
    31 Mar 2013, 09:29 AM Reply Like
  • WallStreetDebunker
    , contributor
    Comments (2104) | Send Message
     
    DELL needs new management (board and execs) and even a new brand name. If DELL's PC division were owned by Lenovo, you wouldn't be hearing the glum news about PCs. You'd hear abouty how Lenovo dominates the industry and is boosting profitability. (Lenovo stock is fully- or over-valued exactly because they are a successful company in a sluggish, mature industry.) Here are some Lenovo stats for comparison to DELL:

     

    http://bit.ly/YM9Jdf

     

    DELL was once the PC industry leader. They can regain that status with the right management.
    31 Mar 2013, 02:19 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Completely agree. Michael Dell has lost respect from many sides on this. Instead of focusing on executing to a hybrid IBM/Lenovo plan with some modern improvements, he has wasted time and money on this ego trip, and is meeting his superior at that game, Icahn.
    31 Mar 2013, 06:46 PM Reply Like
  • A Newell
    , contributor
    Comments (468) | Send Message
     
    If there not careful they will blow themselves up.
    31 Mar 2013, 03:00 PM Reply Like
  • bhttsl
    , contributor
    Comments (443) | Send Message
     
    If this deal blows up, it could be catastrophic for not only DELL, but the entire technology sector. That's why MSFT has its OS and Office finger in the pie. CPU, HDD/ODD, wireless chip, display, memory, graphics, and component manufacturers want to see DELL succeed.
    31 Mar 2013, 11:25 PM Reply Like
  • WallStreetDebunker
    , contributor
    Comments (2104) | Send Message
     
    A Bloomberg article states that Mr. Dell won't back the Blackstone deal unless he gets to be CEO. If true, it should further strengthen Icahn's hand. Does Mr. Dell really think most shareholders care if he continues as CEO? He needs to get out of Austin more.

     

    I'm rooting for Icahn. Give shareholders a big dividend and sell the Dell divisions as soon as possible. It's not like the Dell brand has any special value anymore. Those days are as far gone as the Dell Dude.
    1 Apr 2013, 12:00 AM Reply Like
  • A Newell
    , contributor
    Comments (468) | Send Message
     
    Is it possible that Mr. Dell wants to force the price of Dell lower so that he can buy it for less? Isn't this what stock manipulation lawsuits are made to prevent?
    1 Apr 2013, 11:19 AM Reply Like
  • Martin Opsahl
    , contributor
    Comments (3) | Send Message
     
    It sounds to me like Dell is throwing a temper tantrum in his sandbox. Wonder if he will threaten to tell his Mommy next? My interpretation: "It's MY company and I can do what I want to!! I'm going to make EVERYONE pay if they don't want to play by MY rules!!" or..."I'm taking my toys and going home, 'cause y'all aren't playing fair!". How do you counter that tactic? Spank him? Find a 'binky' big enough to satisfy him? This has been fun to watch...
    1 Apr 2013, 03:36 PM Reply Like
  • A Newell
    , contributor
    Comments (468) | Send Message
     
    Fun to watch but not to buy!
    2 Apr 2013, 11:01 AM Reply Like
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