Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Dell Inc. (DELL), First Solar, Inc. (FSLR), General Electric Company (GE): These Three Stocks Could Go Undetected by the Masses

Page 1 of 2

The world isn’t always a simple place. Sometimes you can find opportunity in the weirdest places. Because of this, I am going to provide you with a glimpse of what may be unique opportunities with the potential to generate pretty large returns.

Dell Inc. (NASDAQ:DELL) could be a potential opportunity

Yes, I seriously believe that Dell Inc. (NASDAQ:DELL) is a compelling investment opportunity right now. Currently Michael Dell (CEO and founder) wants to buy the company at $13.65 per share in partnership with Silver Lake. But Dell Inc. (NASDAQ:DELL)’s biggest stock holder, Southeastern Asset Management, believes that the company is heavily undervalued and could be trading at depressed valuations. Southeastern Management believes that the company should be trading at $23.72 per share.


The stock market doesn’t always reflect the true value of a stock, so both Southeastern Asset Management and Carl Icahn are taking some serious initiative. The duo wants Dell Inc. (NASDAQ:DELL) to give a special one-time dividend to shareholders worth $21.35 billion ($11.86 per share). After the special dividend, the hoped-for outcome is that the stock will be worth more than $2.50 per share (Dell Inc. (NASDAQ:DELL)’s offer price minus the special dividend). If the stock publicly trades at a valuation exceeding $2.50, shareholders would have earned an added return from the special dividend.

I wrote about the potential best-case scenario for Dell Inc. (NASDAQ:DELL) before. I believe that Dell Inc. (NASDAQ:DELL) should be able to trade at $10 per share after the special dividend, giving investors 65% in upside if that best-case scenario occurs.

Solar is pretty hot right now

Now, I am pretty excited about First Solar, Inc. (NASDAQ:FSLR). The stock is stable enough to buy, and small enough to grow. The company currently trades at a $4.5 billion market capitalization. The company’s balance sheet is fairly stable. This is despite all the negativity currently associated with solar companies and government subsidies.

Solar also got a little bit of attention in the recent presidential elections, specifically Solyndra. Even with all of the negativity surrounding alternative energies in general, I am becoming increasingly optimistic in this company.

First Solar, Inc. (NASDAQ:FSLR) is projected to increase the size of its production by 40% over the course of three years, while the cost of production is expected to decline by 30% over the same period. I assume that the profit margins will remain constant. I also believe that the additional 40% produced will be sold on the market. Therefore, I believe that the 40% increase in production will directly translate into a 40% increase of profit for the period. If that is the case, First Solar, Inc. (NASDAQ:FSLR) could potentially grow at around 13% on average over the next three years.

The stock currently only trades at an 11-times earnings multiple. The low earnings multiple is slightly cheaper than the projected growth, which leads me to believe that the stock is heavily undervalued.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!