mrbill

Three Value Stocks That Appear Ridiculously Cheap

If Dell and Ebay are so cheap, then why don't they pay any dividends? If things keep getting worse (as I believe will happen) that could be enough to bankrupt a company like Dell. They don't sell anything special: consumer PCs running Windoze. If you're standing in a soup line the last thing on your mind is a PC. On the other hand, the business operating the soup kitchen will likely need a few good servers, printers, and network switches (you know who I'm talking about). Not to mention some real customer support. Perhaps I'm exaggerating, but I think you get the point. I know Dell sells servers and switches, but lets face it, they are the flavor-of-the-month variety for small businesses.

Dell can be seen as the "solution looking for a problem". Sadly, they are redundant. The real question is, how low can it go?