Sell DELL, sell, sell, sell
03-29-2007, 09:18 PM
#1
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Sell DELL, sell, sell, sell
Accounting misconduct!!! Sell immediately!!! DELL is headed to single digit territory. Sell short if you can find a buyer but I suspect you'll be stampeded by investors storming out the doors.
Buy AAPL
Buy AAPL
03-29-2007, 09:26 PM
#2
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March 30 (Bloomberg) -- Dell Inc. shares fell after the world's second-largest personal-computer maker said it found evidence of misconduct and accounting errors as part of an investigation into its financial results.
The stock sank as much as 8 percent in extended trading yesterday after Round Rock, Texas-based Dell said it would miss a deadline for filing its annual report as officials work to determine if they need to restate results.
The findings may step up pressure on Chief Executive Officer Michael Dell because investors said they are frustrated the company hasn't resolved the issue yet. The U.S. Securities and Exchange Commission started its review in August 2005 and the probe escalated into a formal investigation in November.
``Everybody wants to get to the facts,'' said Mike Green, a fund manager at Benham & Green Capital Management in La Jolla, California, which owns Dell shares. ``I want to find out what's going on with the accounting. I want to see it in black and white.''
Dell has said there may be issues related to accruals and reserves, estimates of expenses or losses that have occurred but haven't yet been paid. The company also is being investigated by the Justice Department.
Shares of Dell fell as much as $1.89 to $21.50 in extended trading yesterday after closing at $23.39 on the Nasdaq Stock Market. They already had fallen 6.8 percent this year.
Dell, which lost the PC market lead last year to Hewlett- Packard Co., has only reported preliminary results for the past two quarters. The company said it will miss the April 3 deadline for its annual report as well as the extended date of April 18.
`Deficiencies'
The audit committee found a ``number of accounting errors, evidence of misconduct, and deficiencies in the financial control environment,'' Dell said in its statement. The committee is being led by Thomas Luce II, a former Dell director and lawyer who returned to the board in September.
The committee is still working with management and independent auditors to determine whether the errors require financial restatements for prior periods. The company had no further comment beyond the release, spokesman Bob Pearson said.
``The question becomes: What's the magnitude? That still is not clear,'' said Michael Shinnick, a portfolio manager at First Source Bank in South Bend, Indiana. The company manages about $3 billion including Dell shares. Investors may ``want to stand aside until there's more clarity.''
Dell also told executives and directors yesterday that they won't be able to buy or sell the company's shares until the company files its annual report for the year ended Feb. 2.
The stock sank as much as 8 percent in extended trading yesterday after Round Rock, Texas-based Dell said it would miss a deadline for filing its annual report as officials work to determine if they need to restate results.
The findings may step up pressure on Chief Executive Officer Michael Dell because investors said they are frustrated the company hasn't resolved the issue yet. The U.S. Securities and Exchange Commission started its review in August 2005 and the probe escalated into a formal investigation in November.
``Everybody wants to get to the facts,'' said Mike Green, a fund manager at Benham & Green Capital Management in La Jolla, California, which owns Dell shares. ``I want to find out what's going on with the accounting. I want to see it in black and white.''
Dell has said there may be issues related to accruals and reserves, estimates of expenses or losses that have occurred but haven't yet been paid. The company also is being investigated by the Justice Department.
Shares of Dell fell as much as $1.89 to $21.50 in extended trading yesterday after closing at $23.39 on the Nasdaq Stock Market. They already had fallen 6.8 percent this year.
Dell, which lost the PC market lead last year to Hewlett- Packard Co., has only reported preliminary results for the past two quarters. The company said it will miss the April 3 deadline for its annual report as well as the extended date of April 18.
`Deficiencies'
The audit committee found a ``number of accounting errors, evidence of misconduct, and deficiencies in the financial control environment,'' Dell said in its statement. The committee is being led by Thomas Luce II, a former Dell director and lawyer who returned to the board in September.
The committee is still working with management and independent auditors to determine whether the errors require financial restatements for prior periods. The company had no further comment beyond the release, spokesman Bob Pearson said.
``The question becomes: What's the magnitude? That still is not clear,'' said Michael Shinnick, a portfolio manager at First Source Bank in South Bend, Indiana. The company manages about $3 billion including Dell shares. Investors may ``want to stand aside until there's more clarity.''
Dell also told executives and directors yesterday that they won't be able to buy or sell the company's shares until the company files its annual report for the year ended Feb. 2.
03-30-2007, 12:10 AM
#3
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Yah, saw this in the news today... I figure by the time it gets in the major news it's too late...
http://finance.google.com/finance?q=Dell
You had a short window ( 15 minutes) between Reuters (first to report on google news) and the over correction. I'm actually surprised it took that long, with something as big as Dell i'm surprised there was even any movement at all. It'll be interesting to see what happens tomorrow, its about 50c down in after hours right now.
http://finance.google.com/finance?q=Dell
You had a short window ( 15 minutes) between Reuters (first to report on google news) and the over correction. I'm actually surprised it took that long, with something as big as Dell i'm surprised there was even any movement at all. It'll be interesting to see what happens tomorrow, its about 50c down in after hours right now.
04-03-2007, 05:50 AM
#4
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BUY BUY BUY BUY on that bad news...................
After reviewing the latest report from Dell, Goldman Sachs analyst Laura
Conigliaro told her clients that she saw more opportunities than setbacks.
The clear negative, Conigliaro wrote, is that Dell won't make the extended deadline of April 18 for filing its financials.
"Even here though," the analyst argued, "it sounds like the audit committee is getting close to concluding its investigation, which we think is a matter of weeks or at most a couple of months."
Conigliaro said that the investigation still seems centered on fiscal years 2002 to 2006, roughly equal to calendar 2001 to 2005, suggesting that there is less risk to restatements for more recent results.
The conclusion might not be material enough for Dell to have to restate, Conigliaro wrote, and Dell had already made a number of key management changes, which could address the issue of "misconduct."
She maintained a "buy" rating on the stock. Her 12-month price target is $28.
After reviewing the latest report from Dell, Goldman Sachs analyst Laura
Conigliaro told her clients that she saw more opportunities than setbacks.
The clear negative, Conigliaro wrote, is that Dell won't make the extended deadline of April 18 for filing its financials.
"Even here though," the analyst argued, "it sounds like the audit committee is getting close to concluding its investigation, which we think is a matter of weeks or at most a couple of months."
Conigliaro said that the investigation still seems centered on fiscal years 2002 to 2006, roughly equal to calendar 2001 to 2005, suggesting that there is less risk to restatements for more recent results.
The conclusion might not be material enough for Dell to have to restate, Conigliaro wrote, and Dell had already made a number of key management changes, which could address the issue of "misconduct."
She maintained a "buy" rating on the stock. Her 12-month price target is $28.
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04-10-2007, 10:14 AM
#9
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once they get their issues straightened out?
The rule is buy high, sell higher -or- not everything that comes down goes back up
If you want to own a PC stock buy one that's actually working. Buy HPQ or something. Bottom feeders eat garbage.
04-10-2007, 12:35 PM
#10
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The trouble is that you aren't buying a PC, you're buying a piece of paper. The only difference is that one has DELL written on it and the other has HPQ written on it. You can't be allowed to confuse the two.
Put it another way. Let's say there is a store you love to shop at because everything is half price. Is it a good investment to buy that company's stock?
If I gave you a choice of XXX or YYY which would you choose?
Everything is the same except XXX has major accounting problems, have a management which is a mess, their costs are high, their margins low and their market share shrinking. YYY has a solid management team, margins are improving and they are gaining market share.
Put it another way. Let's say there is a store you love to shop at because everything is half price. Is it a good investment to buy that company's stock?
If I gave you a choice of XXX or YYY which would you choose?
Everything is the same except XXX has major accounting problems, have a management which is a mess, their costs are high, their margins low and their market share shrinking. YYY has a solid management team, margins are improving and they are gaining market share.
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