“Dell will release its fourth quarter earnings after the bell tonight, and despite some draconian cost cuts and a rock-bottom share price, it is an unattractive investment. And will be for the foreseeable future,” Jim Goldman writes for CNBC.
“Dell shares are trading at a paltry $8, has $4 a share in cash, but can’t seem to get its turnaround strategy in gear. PC sales have stalled, there is no digital music player to bolster revenue and profit margins, ala Apple Inc., and the company’s rumored entry into the smart phone market hasn’t happened yet; even though when and if it does, it’ll be so late to the party that it automatically comes at a horrible disadvantage against Research in Motion and Apple,” Goldman writes.
“Look for more aggressive cost-cutting from the company on its conference call, and an optimistic tone as Dell continues to work its turnaround strategy. It’ll sound good, and shares may even see some upside based on those comments. But for the time being, Dell’s got major issues internally and externally, and it’s not clear to anyone I’ve talked to that this company has come up with a way to navigate itself out of its mess,” Goldman writes.
Full article here.
MacDailyNews Take: Karma seems to be especially bitchy about Dell. Hey, Mikey: SIDAGTMBTTS.
