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

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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.

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