cityp3

Why Dell Is a Great Value at These Levels

Have you looked at what DELL stock would be worth today if they liquidated? Take a closer look at the balance sheet. You'd be left with next to nothing assuming fire-sale inventory prices and and a discount to receivable book value.

While DELL has tons of cash and little debt, take a look at the payables. DELLs negative cash flow model works great when revenues are growing. Payables, however, are 2x receivables. Those payables, while not debt, represent real creditors and DELL needs to pay its suppliers at some point. Don't be surprised to see very weak cash flow as revenue continues to decline. Also don't expect to see major stock repurchases, as management understands its cash dynamic and is likely to be very cautious using cash in this environment.

So yes, DELL looks cheap. But as long as revenue growth is negative, I would not get excited about DELL.

Current TBV per share = $0.85

What's Next for the Colocation Sector?

why are you not long DFT?