Dell Technologies Inc. (NYSE:DELL) was among Jim Cramer’s stock calls on Mad Money, as he highlighted worthy space players and reviewed several of this year’s IPOs. Noting that the stock is up 155% since the end of March, a caller asked if it is a buy, sell, or hold. In response, Cramer stated:
You want to hold on there. I think it’s a terrific stock. As a matter of fact, if it pulled back any more than it has, like I was looking at it yesterday, and I said, jeez, you know, this thing has really come down very quickly, and it’s just a terrific buy. Michael Dell, by the way, is doing fantastic work… It’s an easy call to say to buy Dell and to believe in Michael Dell.
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Dell Technologies Inc. (NYSE:DELL) provides storage systems, servers, networking gear, and consulting services, as well as laptops, desktops, workstations, and accessories. During the June 1 episode, Cramer said that “We shouldn’t have been scared of Dell,” as he remarked:
We spend a huge amount of time around here pondering the supposed overvaluation of tech. It’s right at the heart of what’s allegedly wrong with the stock market, right? But I challenge that on two different fronts. First, how expensive is tech really? Just consider Dell. Four months ago, Dell was at $114, and there were plenty of firms thinking it was way too expensive because it was going to have a huge problem on its hands, thanks to rising memory prices and a pesky Super Micro, a difficult, well-connected competitor.
Any generalist who was looking at the company certainly wasn’t all that attracted to it. Dell was buying back a lot of stock. It seemed like a decent situation except the intelligentsia kept coming on air and was busy telling everyone it was a gigantic bubble. Turns out this stock was selling for only 8 times forward earnings, perhaps one of the cheapest 10 to 15% of stocks in the entire S&P 500. We just didn’t know it yet because the company hadn’t reported it yet. We shouldn’t have been scared of Dell. We should have been buying it. That $114 stock now trades at $465.
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