boisterousbob

Why I'm Investing in Michael Dell

I am afraid I have to agree with the commentators. DELL is a very troubling company to invest in. They have $7 Billion to invest which could be used to change the future as the author correctly notes.

But, truth be told, we haven't seen any sign of DELL actually doing anything useful with all that cash, have we?

I would rather invest in Dell when they announce a strategy for using their cash that I consider to be a suitable one, rather than on the expectation that they may one day come up with a strategy that I may or may not like.

Earnings Preview: Dell

Not sure why you believe sentiment is bearish? I think sentiment is far too bullish.

The short interest has reduced nearly 15% in the last 2 weeks. Call side open interest is very high at 9,10,11 strikes. Put call ratio is almost as low as it has ever been around half the average.

What is bearish?

Looks like a good short to me.