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The recent news about Dell, Inc. (DELL), Hewlett-Packard Company (HPQ), and 3Par, Inc. (PAR) is pretty interesting. Check out this article to be brought up to speed about the strange bidding war that's taken place. All of it got me thinking about Dell's equity.At the moment, Dell is closer to its 52-week low of $11.34 than its 52-week high of $17.52. It finished today's session at $12.13. If you look at the narrow range through the perspective of a one-year chart, you'll note that the stock has experienced a pullback, one that began near the end of April.
The company certainly isn't expensive (in my opinion, anyway), but I think it's difficult to say that the stock should be bought at this time. And I say that whether you're a trader or an investor.
I'm sure there are some traders out there who are calling me crazy. They look at where the stock is on the chart and conclude that buying low is better than buying high. I'm worried, however, about the volatility in the markets. Sure, today was great, but what about tomorrow? Are we out of the woods yet? Are new 52-week lows in the offing?
To investors, I ask the following: are there better ideas in this sector? What about the aforementioned HP? What about International Business Machines (IBM)? Or Apple (AAPL)?
For now, I'm not buying the Dell thesis. I don't believe it is the strongest idea out there, and I'd rather wait for more data. Plus, as Tom Taulli recently pointed out, management is currently challenged as far as growth goes.
Disclosure: I don't own any company mentioned; positions can change without notice.
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