Dell Inc. (DELL): Will This Tech Giant See the Light of Day?

Something fishy?

Coming back to Dell, dig deeper and you may realize that there could be more behind its poor numbers than low PC sales. Earlier this year, the company decided to go private. Currently, Dell’s Board is trying to convince its investors to accept Michael Dell’s $24.4 billion buyout offer. At a sale price of $13.65 per share, this may seem too cheap to most. In such a situation, the poor numbers in Dell’s last quarter may be right what the Board needed to convince the shareholders. What better to do so than an extremely weak first quarter?

Whether Dell’s investors take the cue or not remains to be seen. If they don’t, the company might remain public, as wanted by Carl Icahn and Southeastern Asset Management, two of Dell’s biggest shareholders.

Here’s what to do

Even if Microsoft’s attempts to fuel demand for Windows 8 proves successful, Dell is unlikely to see a big enough turnaround in its PC sales. It’s the time for tablets and smartphones, the market for which is already saturated. Dell does not have much hope for the future. In this situation, the best bet would be to accept Michael Dell’s offer. At the stock’s current price, the offer made by Dell suddenly does not look all that bad.

The article Will This Tech Giant See the Light of Day? originally appeared on and is written by Sonam Chamaria.

Sonam is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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