Dude, did Dell finally score? - Top Stocks Blog - MSN Money
 
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Dude, did Dell finally score?

Posted Dec 27 2007, 05:37 PM by Matt Koppenheffer
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Was bringing Dell back to Dell the right answer after all?

It's been a rough few years for Dell, as competitors like HP and Apple have been chomping away at its market position and its stock is 40% off the highs it hit back late 2004. It got bad enough that early this year Michael Dell stepped back in as CEO after stepping down in 2004.

Based on the stock price at least, it'd be hard to call 2007 an extraordinary success as the stock is roughly flat for the year. Dell (Michael that is) has been active, though, and is bringing some interesting changes to the company. In the Spring the company announced that it would start selling computers at Wal-Mart, and since then it has announced that it will be entering other retailers, including Best Buy.

But what really caught my eye was a write-up by Walter Mossberg in today's Wall Street Journal (subscription required). Dell's computers have been known as a lot of things: efficient, cost effective, timely. Mossberg's description of the new Dell XPS One desktop as "an elegant, handsome, cleverly designed one-piece computer," however, is not a portrait typically associated with a Dell computer.

So it looks like Dell could be righting the ship, but will this be reflected in Dell's stock any time soon? The stock carries an unimpressive two star rating on CAPS and has more than its share of critics. Some of CAPS top players can be found among the Dell bulls, though. Carstenjansing likes the Michael Dell angle and said that the "founder [is] at the helm again, turning things around." SandyRN, who's been a Dell bull for even longer, said that Dell has a "good business model" and thinks that the stock is undervalued to boot.

So what do you think? Head over to CAPS and chime in.


(Full disclosure: I do not have a financial position in any of the companies mentioned.)

Comments

 

I THINK DELL COMPUTERS ARE THE BEST BUY FOR MONEY

But will M. Dell now put his attention on to the tech. support.  It has gone down hill of late!  That will also help bring Dell, the computer that is, back!

Friendly.taxman

One-piece computers suck!  This is why--despite Windows Vista sucking even more--I will never go with an Apple computer.  I love being able to "get under the hood" of my machine and pimp my PC.

I personal stopped purchasing Dells computers for my small business because it is impossible to speak to someone in the United States to get tech support. I find Dells overseas tech support unable to understand English and provide the quality of service that I found in my earlier Dell computers.

I dont care what type of machine Dell puts out, until they address their customer service problems Dell will never be a top company again.  The idea that if you pay extra we will let you talk to someone in the United States is ludicrous.  How about taking care of your customers.  Outsourcing their call centers was stupid.  When you call with a problem, first you cant understand the person and second the person you talk to usually has no clue how to help you.  They read off of a computer screen and anything that comes up that isnt covered by their directions they get lost and have no idea what to do.  If they give you instructions and you let them know you already did that they are unable to skip ahead to the area that you need help with.  And heaven forbid you have to call back.  You end up starting all over again because either the person you talked to before never left any notes about what was done or the person you are talking to now is unable to access those notes even though you gave them the work order number from the first call.  And woes to you if you have to call a third time.  I believe they do this to make people frustrated so they dont call back.  

As a former Dell employee, I know that a lot of work has been put toward the things that customers complained about: Ugly Computers and Crappy Customer Service. It's good to see them get a good write up.

In my experience, it has never been about the quality or capabilities of DELL products. It has been about the issue of customer service/followup, or the lack thereof. When THAT gets back on track DELL may indeed be righting the ship.

I love my Dell computer and will never consider another-Donovan

The stock market is a joke and is too dependent on short term trends and people's perceptions.  Dell makes a good, easy to use product and their online ordering system is still way ahead of anything else.  Dell's  shifting emphasis on Wal-Mart and other stores should be perceived as a sign of desparation.  The wild market swings based on one company's quarterly reports or the perception that the Fed didn't adjust their rates enough reeks of market manipulation by insiders who have nothing better to do and don't realize that true value is made by having good ideas and building good products.

Dell charged me $45 for paying for my workstation ahead of the due date.

Their support team speaks very poor English, like they just off the boat.

Their accounting is very deficient.  Losing customers does not seem to be of any concern to the company.  No wonder their stock is going down to zero.

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