Tuesday, August 17, 2010

Dell Tries To Buy A Brighter Future

F.Scott Fitzgerald is credited with saying "there are no second acts in American lives" and he may as well have been talking about American business. For every Apple (Nasdaq:AAPL), there are at least two Atari's - most companies have their one big shot as a growth company and then settle into a low-growth maturity or fade away entirely. Tech in particular seems to follow this pattern - how many people remember when Ciena, Lotus, and Netscape were the future of the tech sector? 

To borrow another literary metaphor, Dell Computer (Nasdaq:DELL) is not going quietly into its good-night. Once a hot tech stock for its success in the direct-to-consumer PC market, Dell has since struggled to recapture its former glories. Will a multi-year acquisition spree give DELL's shareholders another chance to enjoy above-average growth, or is the company simply frittering away its owners' cash? 


To read the complete Investopedia article, please click the link:
http://stocks.investopedia.com/stock-analysis/2010/Can-Dell-Buy-A-Brighter-Future-DELL-AAPL-PAR-EMC-IBM-HPQ-CSCO0817.aspx

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