Dell has hit bottom
DELL: Dell has run into several unfortunate events in recent months. First, the company warned that it will be reporting less than expected due to slow PC sales and fierce competition, which resulted in increased promotion, thus lowering the profit margin. This took the stock down from $26 to $22. About a month ago, Dell also announced a recall of hundreds of thousand laptop batteries, which took the stock down a couple more points. Since then, the stock has been trading in the $21 - $23 dollar range. It is our view the stock has hit bottom and poised to move upward from here. All the negative sentiment has already been built into the stock. Moreover, Dell is still the number one PC manufacturer. Once the company works out the kinks and Microsoft releases its new Operating Systems, this stock should also benefit.
