Dell a Bargain at less than $9

The market is misreading Dell. The company posted low to expectations and like many tech companies got hammered. But an examination of the facts behind the figures show that Dell is doing mostly the right things. I agree with Paul McWilliams of Nextinnings that Dell has become an different business and that the change is accelerating. Yes buying now looks risky, but I suggest we might be seeing a bottom in Dell and that in 12-18 months this share will be back substantially over $12 giving a 50% upside from today. But even better its paying nearly 4% dividends and a growing dividend as well. With a P/.E of 5 a PEG of less than 1 and a revenue of $50bn this is a solid global company and fits well into my thesis that big is better right now.