Watching Dell, Inc.

Posted on April 21, 2006 , filed under Stocks | Print This Post

DELL, Dell, Inc. is trading lower today on a downgrade from Citigroup. Dell reached a new 52 week low of $27.07 this morning. The company and its subsidiaries engage in the design, development, manufacture, marketing, sale, and support of various computer systems and services to customers worldwide.

I think the downgrade presents a great opportunity to purchase a high quality company as the PC sector faces some temporary weakness. Major jumps in PC sales are cyclical and depend either on season or on available software applications and games to take advantage of new hardware. MSFT, Microsoft Corporation is set to release Windows Vista sometime in early 2007. Windows Vista should be the largest catalyst to drive PC sales growth in the near term future. I believe we will see additional drops in DELL as we enter a slow summer season for PC sales and the market waits for the release of Windows Vista. If DELL drops below $27, I will pick up some shares.

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