Dell Inc. (DELL): The Company’s Turnaround Plan Is One Big Gamble

It’s hard to fault Michael Dell for taking drastic measures to revitalize the business he founded in his dorm room decades ago. The more moderate transformation strategy Dell has implemented in the past few years has failed to stop the company’s fall. However, the proposed investments in research and development and sales force expansion will take years to pay off — if they pay off at all. Dell, as a billionaire, can afford to gamble a significant amount of his wealth in hopes of revitalizing his company. Regular investors probably can’t afford that kind of bet on Dell’s long-term potential. With shares up 60% since mid-November, it’s a good time for ordinary folks to lock in gains (or in the case of some long-term shareholders, cut losses).

The article Dell’s Turnaround Plan Is One Big Gamble originally appeared on Fool.com and is written by Adam Levine-Weinberg.

Fool contributor Adam Levine-Weinberg owns shares of Hewlett-Packard. The Motley Fool owns shares of International Business Machines (NYSE:IBM) and Microsoft.

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