Also in the news…
In this week’s episode of “Dell Inc. (NASDAQ:DELL)’s of Our Lives,” we learned that Carl Icahn has proposed a new method of increasing shareholder value outside of his original $15 per share tender for most of the outstanding shares. The new proposal involves Dell Inc. (NASDAQ:DELL) to self-tender its shares — a fancy word for buyback — in the amount of $16 billion. Dell’s special committee board is reviewing the new offer, but has already commented that it needs more details, and anticipates the new offer will fall well short of the Silver Lake Partners/Michael Dell deal already on the table.
Shareholders in networking equipment maker QLogic Corporation (NASDAQ:QLGC) certainly have a reason to rejoice, as it will be added to the S&P Small Cap 600 as of the close of business on Friday. Being added to the S&P Small Cap 600 index will mean that mutual funds that track the index will be required to purchase shares of QLogic Corporation (NASDAQ:QLGC). With more than $5 in cash per share on its balance sheet, the downside risk in QLogic is quickly abating.
Finally, audio accessories company Skullcandy Inc (NASDAQ:SKUL) announced a realignment of some of its business divisions, and the upcoming departure of current CFO Kyle Wescoat, who plans to leave the company in September. Under the new alignment, Skullcandy Inc (NASDAQ:SKUL) plans to relocate its marketing, creative, business development, and legal departments to its Park City, Utah, headquarters. Although this will translate into a pre-tax restructuring charge of $3 million to $3.8 million, it’s a strong move to help unify Skullcandy’s new strategy.
We can do better
All good things must come to an end, and the six-week streak of outperformance came to a halt this week, with the S&P 500 outpacing my deep value portfolio by 0.2%. As I keep saying, though, this isn’t a sprint — it’s a marathon. These 10 companies all possess intriguing valuations, and appear to be perfect contrarian plays in an otherwise bullish market.
Check back next week for the latest update on this portfolio and its 10 components.
The article One Person’s Trash Is Another Person’s Treasure Portfolio originally appeared on Fool.com.
Fool contributor Sean Williams owns shares of QLogic, Dell, Skullcandy, and France Telecom, but has no material interest in any other companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool owns shares of Dendreon, France Telecom, Skullcandy, and Staples, and recommends Exelon and France Telecom.
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