Over the years, Dell (DELL) has seen a relentless attack on its PC business. Then again, in the tech industry, it is common for high fliers to wind-up in the dust bin of history. Unfortunately, Dell seems to be moving in this direction -- and shareholders have suffered mightily.

Traditionally, Dell's main threats have come from major PC operators like HP (HPQ) and Lenovo. But perhaps Apple (AAPL) is the biggest threat now. After all, the company's Mac business is gaining momentum and the iPad has become a runaway top seller.

Continue reading Dell's Streak Brings Back the Brick Phone

Dell's Streak Brings Back the Brick Phone originally appeared on BloggingStocks on Thu, 12 Aug 2010 11:00:00 EST. Please see our terms for use of feeds.

There's been a lot of chatter lately about a potential buyout for Palm Inc. (PALM), with various reports pointing to HTC and Lenovo as possible suitors for the parent of the Pre and Pixi smartphones. However, one long-term option trader on Monday placed a confident bet against a white-knight bid for PALM by opening a sizable, out-of-the-money put position on the equity.

Around midday Monday, a block of 6,500 contracts slipped across the tape on PALM's January 2011 2.50 put, which is currently out of the money by about three points. These puts changed hands at the ask price of $0.25, suggesting they were purchased.

Continue reading Options Bear Places Massive Bet Against Palm

Options Bear Places Massive Bet Against Palm originally appeared on BloggingStocks on Tue, 13 Apr 2010 12:30:00 EST. Please see our terms for use of feeds.

Acer Inc. of Taiwan has Hewlett-Packard (HPQ) of the U.S. in its sights to become the world's largest manufacturer of PCs. To do that will be no easy matter, as HP's rampage in sales in the past 24 months has put it way ahead of former number two Dell (DELL) and, for the first time, made it a $100 billion company (annual sales). But Acer has not tread lightly either, gobbling up the Gateway and Packard Bell brands.

Where can Acer work on its plans for global domination? China, of course. The company will increase sales training and work on upping its retail network in China by 30% as it chases the fastest-growing PC market in the world. So far, Acer's mindshare in China is in fifth place due to its inability to be recognized for the global PC behemoth it is. Acer intends to change that in China.

Continue reading Acer Sets China Sales Strategy As It Chases Hewlett-Packard for Top PC Spot

Acer Sets China Sales Strategy As It Chases Hewlett-Packard for Top PC Spot originally appeared on BloggingStocks on Sat, 19 Dec 2009 14:40:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Aeropostale Inc. (NYSE: ARO) beat profit expectations as revenue and same-store sales both increased.
• Aruba Networks Inc. (NASDAQ: ARUN) received an analyst's upgrade following its Q3 report.
• Buckle Inc. (NYSE: BKE) reported better-than-expected Q1 expectations as revenue surged.
• Campbell Soup Co. (NYSE: CPB) higher Q2 earnings beat expectations and sent shares upward.
• Deere & Co. (NYSE: DE) reported better-than-expected Q3 earnings, sending shares higher.

Continue reading Earnings highlights: Home Depot, Target, Sears, Campbell, Deere and more

Earnings highlights: Home Depot, Target, Sears, Campbell, Deere and more originally appeared on BloggingStocks on Sat, 23 May 2009 09:40:00 EST. Please see our terms for use of feeds.

Lenovo cut 450 jobs in China. A month ago, it announced larger layoffs. As demand for PCs cascades it appears hard for the Asian company to keep up by increasing cost cuts.

The news about Lenovo may be particularly bad for Dell (NASDAQ: DELL). According to the AP, "Lenovo says it has been hit harder than competitors by the global slowdown because of its reliance on corporate customers, who have cut spending more sharply than consumers." Dell's base of buyers is also tilted toward corporations, which increases the chances that it may miss earnings in the next quarter and give guidance below what Wall Street expects.

Continue reading As Lenovo cuts, Dell sweats

As Lenovo cuts, Dell sweats originally appeared on BloggingStocks on Wed, 25 Feb 2009 11:00:00 EST. Please see our terms for use of feeds.

Dell to close Ireland facility, hand out 1,900 pink slips originally appeared on BloggingStocks on Thu, 08 Jan 2009 10:27:00 EST. Please see our terms for use of feeds.

Lenovo is, by most measures, the third largest PC company in the world. Several years ago, it took over IBM's(NYSE: IBM) personal computer business, giving it a foothold in the U.S.

Last night, Lenovo said its business is falling to pieces. Coming a day after a warning from Intel (NASDAQ: INTC), a grim picture of the industry is beginning to emerge. The most likely company to bear a heavy burden is Dell (NASDAQ: DELL), which is already facing challenges to its sales and global market share.

According to the FT, "Along with other computer makers, Lenovo is suffering from a plunge in demand for PCs. Lenovo, however, is particularly hard hit because of its reliance on the corporate segment, where companies are cutting IT spending aggressively." Dell also relies on the corporate market for a large piece of its sales.

Lenovo also said it would cut 11% of its staff.

Dell's shares are already down to $11 from a 52-week high of $26. If it reports awful earnings and guides down for 2009, that share price would easily drop below its 52-week floor of $8.72. By the way, if Dell had to cut 10% of its workers, over 8,000 people would be out of jobs.

Douglas A. McIntyre is an editor at 24/7 Wall St.

As Lenovo sales fall apart, huge risks for Dell originally appeared on BloggingStocks on Thu, 08 Jan 2009 09:40:00 EST. Please see our terms for use of feeds.

• Wal-Mart Stores Inc. (NYSE: WMT) surprised when it said that December same-store sales rose 1.7% excluding fuel. This was lower than the average estimate of an increase of 2.8% in a survey of analysts by Thomson Reuters. WMT also cut its forecast for fourth-quarter earnings from continuing operations due to higher expenses and lower-than-expected sales at Sam's Club and Wal-Mart International. WMT shares were down over 8% in premarket trading.
  
• Costco Wholesale Corp. (NASDAQ: COST) reported that for December, same-store sales fell 4%, and total sales fell 2% from the year-earlier month. Comparable sales fell 2% in the U.S. and 11% internationally. This was below analyst estimates of a 3.7% decline. COST shares were down 1.8% in premarket trading.
  
• Sears Holdings (NASDAQ: SHLD) reported that December domestic same-store sales fell 7.3%, with Kmart sales down 1.1% and Sears domestic sales falling 12.8%. Sears also gave revenue and earnings estimates, higher than what analyst estimated. SHLD shares soared over 10% in premarket trading.
  
• Williams-Sonoma Inc. (NYSE: WSM) said that comparable sales in the 8 weeks to Dec. 28 fell 24.2%. Total sales declined 22.6%. The company also said fourth-quarter earnings will likely be at the lower end of the range, much lower than the average estimate. WSM shares were 1.7% higher in premarket trading.
  

• EMC (NYSE: EMC), the data-storage firm, announced 2,400 job cuts, or about 6% of its workforce. EMC also cut the salaries of top executives. Its preliminary results, though, were inline with estimates. EMC shares rose 4.2% in premarket trading.
  
• Dell (NASDAQ: DELL) said it is closing its main plant in Ireland, cutting 1,900 jobs as it is moving production to Poland. Dell shares were down 1.4% in premarket trading.
  
• Lenovo Group warned it expects a loss for its latest quarter and said it will lay off 2,500, or 11%, of its workforce worldwide. Shares plunged over 25% in Hong Kong.

Continue reading Stocks in the news: WMT, COST, SHLD, WSM, EMC, DELL, M, MSFT, BBBY

Stocks in the news: WMT, COST, SHLD, WSM, EMC, DELL, M, MSFT, BBBY originally appeared on BloggingStocks on Thu, 08 Jan 2009 08:21:00 EST. Please see our terms for use of feeds.

Dell (NASDAQ: DELL) lost the crown of being the premier PC company to Hewlett-Packard (NYSE: HPQ) years ago. Now Asia companies like Lenovo and Acer are after its No.2 position. And, they are having some success.

According to The Wall Street Journal, "Dell Inc. is preparing management changes that are expected to shake up an executive team that Chief Executive Michael Dell brought in as part of his turnaround plan for the big computer maker." The head of global operations and the chief of marketing will both be moved out of their jobs.

Dell has already done a lot of restructuring, laying off thousand of workers. Its stock is off almost 80% this year, compared to less than 30% for HP. Surprisingly, Dell's shares have done as well as Apple's (NASDAQ: AAPL) over the same period.

Most commentators will say that Micheal Dell is the problem and that the board should replace him, but that dodges the complexity of Dell's situation. It operates in world where PCs are often a commodities, sold on price as much as function. The new Microsoft (NASDAQ:MSFT) operation system that runs them, Vista, is unpopular. Apple appears to have taken much of the high end of the market with its Mac.

Dell also faces a harsh economy which has already begun to erode its sales. One of the reasons Apple's stock is down so much is that it faces the same negative forces.

For the time being, it looks like even Dell cannot fix Dell. And, its situation in the broader marketplace is such that no one else can either.

Douglas A. McIntyre is an editor at 247wallst.com.

Heads roll at Dell originally appeared on BloggingStocks on Wed, 31 Dec 2008 04:01:00 EST. Please see our terms for use of feeds.

Investors tend to forget that some of the world largest PC companies are based in China, lead by Lenovo and Acer. The two companies run behind Dell (NASDAQ:DELL) and Hewlett-Packard (NYSE:HPQ) in global market share. But, that may be changing in a way that the two US companies will find unpleasant.

Research firm Gartner looked at PC sales around the world during the third quarter. According to Reuters, "Overall, worldwide PC shipments rose 15 percent from last year to 80.6 million units." To no one's surprise, growth in the US was slower, up 4.6%.

HP's global market share was 18.4% and Dell's was 13.6%. Acer rose to 12.5% making it the most improved of the three compared with last year.

Acer's secret is that it is selling netbooks, small PCs which usually cost under $500. Analysts have questioned whether consumers would want these because smartphones have many of the same functions. Acer has taken the gamble of ramping up production, a potentially risky move if the customers were not out there. The decision is giving them a chance to steal a march on the larger rivals.

The Acer move may say as much about what is wrong with US PC companies as its says about what is right at Acer. There are many people, especially in emerging markets, who are not likely to be able to spend $1,000 on a computer. And, the mobility of the US PC user is improving with the success of WiFi and 3G.

Dell and HP should be concerned every time they see someone walking down the street with a netbook. It has probably been sold to them by a competitor.

Douglas A McIntyre is an editor at 247wallst.com.

PC companies should be concerned as Acer market share rises (HPQ) (DELL) originally appeared on BloggingStocks on Wed, 15 Oct 2008 10:40:00 EST. Please see our terms for use of feeds.

JP Morgan downgraded big China-based PC maker Lenovo. According to Reuters, the brokerage cut Lenovo "to neutral from overweight due to a near-term slowdown in revenue growth from weak China demand and a slower ramp-up of the U.S. consumer business."

That is not exactly good news for U.S. PC companies Dell (NASDAQ: DELL) and Hewlett-Packard (NYSE: HPQ) that already appear to be losing market share to the Apple (NASDAQ: AAPL) Mac. China is a critical market to both companies, and any sign of further stress in the U.S. market does not leave them many regions to make up for faltering demand.

Wall Street is already concerned that a recession in the U.S. and slowing economies abroad will hammer the PC market. Like most American companies, HP and Dell thought they could always rely on the rapidly expanding markets in Asia.

It turns out that the best laid plans are not working out.

Douglas A. McIntyre is an editor at 247wallst.com.

A downgrade of Lenovo bodes ill for HP and Dell originally appeared on BloggingStocks on Tue, 22 Jul 2008 11:37:00 EST. Please see our terms for use of feeds.

Dell and Lenovo exchange ad misrepresentation barbs originally appeared on BloggingStocks on Tue, 24 Jun 2008 11:22:00 EST. Please see our terms for use of feeds.

Korea's LG eyeing GE's appliance unit originally appeared on BloggingStocks on Tue, 27 May 2008 17:36:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Activision Inc. (NASDAQ: ATVI) beat Q4 expectations and raised its fiscal 2009 guidance.
• Air France-KLM swung to a loss in the fourth quarter and warned of tough times ahead.
• BJ's Wholesale Club (NYSE: BJ) Q1 earnings soared, beating expectations, and it raised its forecast.
• Canadian Solar Inc. (NASDAQ: CSIQ) beat Q1 estimates on robust demand and favorable exchange rates.
• Foot Locker Inc. (NYSE: FL) Q1 profit declined, hurt by an impairment charge and nearly flat sales.
• Gap Inc. (NYSE: GPS) beat Q1 earnings estimates by managing costs and inventory.
• Home Depot Inc. (NYSE: HD) Q1 earnings tumbled on a one-time charge and the housing slump.
• Intuit Inc. (NASDAQ: INTU) beat Q3 expectations and announced a share buyback program.
• Lenovo Group Ltd. (OTC: LNVGY) Q4 earnings more than doubled on strong global distribution.
• Lowe's Companies Inc. (NYSE: LOW) reported a so-so first quater in line with Wall Street expectations.
• NetEase.com Inc. (NASDAQ: NTES) Q1 earnings declined due to increased tax burden.
• Saks Inc. (NYSE: SKS) missed Q1 earnings estimates but beat revenue expectations.
• Solarfun Power Holdings Co. (NASDAQ: SOLF) Q1 revenue surged 529% from the previous quarter.
• Suntech Power Holdings Co. (NYSE: STP) Q1 revenues soared and earnings more than doubled.

Additional earnings highlights:
Hewlett-Packard, Target, Barnes & Noble, Campbell, Staples and others
Ford, Hormel, Limited Brands, Intuitive Surgical, PetSmart and others

Upcoming results to watch for include Borders (NYSE: BGP), Polo Ralph Lauren (NYSE: RL), TiVo (NASDAQ: TIVO), Big Lots (NYSE: BIG), Costco (NASDAQ: COST), Dell (NASDAQ: DELL), HJ Heinz (NYSE: HNZ), Sears (NASDAQ: SHLD), Lions Gate (NYSE: LGF), and Tiffany (NYSE: TIF).

Visit AOL Money & Finance for more earnings coverage.

Earnings highlights: Home Depot, Gap, Lenovo, Air France, Activision, Suntech and others originally appeared on BloggingStocks on Sat, 24 May 2008 09:40:00 EST. Please see our terms for use of feeds.

Lenovo's fourth quarter profit doubles as shipments grow rapidly originally appeared on BloggingStocks on Fri, 23 May 2008 09:47:00 EST. Please see our terms for use of feeds.

Usually, when sovereign funds put money into a company it is simply a financial investment. Dell (NASDAQ: DELL) may have unlocked something more. According to The Wall Street Journal: "Dell said it is in talks with a government-owned entity in Dubai about establishing a joint venture to further increase the personal-computer maker's sales in the Middle East." In other words, the computer company will get value well beyond cash.

For Dell, it is a brilliant move that shows government funds can do more than just write checks. The PC market in the Middle East is large and growing very rapidly.

The US company may have found a template for improving its market share around the world through forming joint ventures with local pools of capital. Dell's growth in many markets has been hurt by the improvement of share by Hewlett-Packard (NYSE: HPQ), and the rise of big computer companies Lenovo and Acer out of China. All of these companies need to improve their business in growing markets, like the Middle East and Asia, if they want their earnings to move up.

If the Dell venture in Dubai works, it would be wise to look to sovereign funds in Russia, China, and Singapore for similar deals. Dell's market share in many of these regions is in trouble. Who better than the locals to help them?

Douglas A. McIntyre is an editor at 24wallst.com.

Dell (DELL) may take sovereign fund investment originally appeared on BloggingStocks on Wed, 09 Apr 2008 11:12:00 EST. Please see our terms for use of feeds.

The earnings crunch is in full swing, and here are a few of the highlights of this past week's earnings coverage from BloggingStocks:

• American Express Co. (NYSE: AXP) reported a slip in profits and warned of slow growth in 2008.
• Alberto-Culver (NYSE: ACV) returned to profitability after a spin-off and restructuring.
• Avnet Inc. (NYSE: AVT) beat expectations and offered a revised forecast.
• Black & Decker Corp. (NYSE: BDK) beat expectations but lowered its outlook due to the housing slump.
• Eastman Kodak Co. (NYSE: EK) fell short of earnings estimates, sending shares lower.
• Hershey Co. (NYSE: HSY) responded to disappointing results by announcing price increases.
• Kraft Foods Inc. (NYSE: KFT) fourth-quarter profit fell on higher costs for raw materials.
• Lenovo Group Ltd. (OTC: LNVGY) nearly tripled quarterly earnings on strong demand for PCs in Asia.
• MasterCard Inc. (NYSE: MA) beat expectations, even after excluding a one-time investment gain.
• McCormick & Co. (NYSE: MKC) posted solid results on strength in international markets.
• McDonald's Corp. (NYSE: MCD) beat expectations, but reported flat same-store sales in December.
• Procter & Gamble Co. (NYSE: PG) reported strong second-quarter results on strength in emerging markets.
• SanDisk Corp. (NASDAQ: SNDK) reported a profit but missed revenue expectations.
• Sherwin-Williams Co. (NYSE: SHW) missed estimates and lowered expectations for the next quarter.
• 3M Co. (NYSE: MMM) beat expectations despite a decline in profits.
• Tyson Foods Inc. (NYSE: TSN) profits fell and it announced a plan to raise prices.
• Verizon Communications Inc. (NYSE: VZ) met earnings estimates but fell short of revenue expectations.

For additional BloggingStocks earnings highlights, see Yahoo!, Google, Amazon, Countrywide, Merck, UBS and others and Exxon, Boeing, Halliburton, Sony, UPS, Honda and others.

Continue reading Earnings highlights: McDonald's, Kraft, P&G, Verizon, MasterCard, 3M and others

Earnings highlights: McDonald's, Kraft, P&G, Verizon, MasterCard, 3M and others originally appeared on BloggingStocks on Sun, 03 Feb 2008 09:40:00 EST. Please see our terms for use of feeds.

Big China PC company Lenovo did something that Dell (NASDAQ: DELL) and Hewlett-Packard (NYSE: HPQ) won't. According to Reuters, it "beat expectations by nearly tripling quarterly earnings, riding strong demand for PCs in Asia."

Lenovo would like to get into the business of selling more PCs in the US, but it may be lucky that it does not have too much exposure here. The company gets about 40% of its revenue from China.

The news is a reminder that US PC companies may have a hard time this year. While they sell PCs overseas, they do not have a dominant position in the world's most populated country. In the US and Europe they are up against a resurgent Apple (NASDAQ: AAPL) and products from Taiwan PC company Acer.

Lenovo may do well this year. US PC companies are another matter.

Douglas A. McIntyre is an editor at 247wallst.com.

Lenovo: The advantages of being in Asia originally appeared on BloggingStocks on Thu, 31 Jan 2008 10:10:00 EST. Please see our terms for use of feeds.

It used to be that all tech companies wanted big footprints in the US market. Asia-based PC firms, lead by Lenovo and Acer, have been trying to get into America for years. Their efforts have been hurt by big domestic operators, especially Hewlett-Packard (NYSE: HPQ), Dell (NASDAQ: DELL), and, more recently, Apple (NASDAQ: AAPL).

Perhaps it is lucky for Lenovo that its efforts here have not worked out so well. It is set to announce profits which will be double what it did last year in the same quarter. The company should have a better year than its US rivals because of its strength in China and the rest of Asia.

"The biggest concern is the slowdown in the PC market this year, but Lenovo is best-positioned within the sector since it has the least exposure to the US market," said CLSA analyst Jenny Lai, quoted by Reuters.

The news also underscores that fact that US PC companies are still behind where they would like to be in Asia. This is especially true of Dell, which is only now making deals with retailers in the region to sell its PC.

For once, having trouble getting into the US market may be a blessing.

Douglas A. McIntyre is an editor at 247wallst.com.

Lenovo, with little exposure in US, set to out-perform HP (HPQ) and Dell (DELL) originally appeared on BloggingStocks on Tue, 29 Jan 2008 07:09:00 EST. Please see our terms for use of feeds.

Chinese PC maker Lenovo has seen its shares take a slide on concerns that a slowing US economy could hurt computer sales. Oddly, the US is not Lenovo's largest market, not even close.

Lenovo shares "dived more than 14 percent on Wednesday after a broker cut the Chinese firm to sell on growing fears of a US recession," according to Reuters. Lenovo would like to be a major force in the US PC market, but most of its sales are in Asia.

Concerns about Lenovo's prospects in the US make the fortunes of Hewlett-Packard (NYSE: HPQ) and Dell (NASDAQ: DELL) look even worse. Dell shares are back at a 52-week low of about $20. The return of the company's founder has done nothing for shareholders. The mighty HP, which has outperformed most tech stocks over the last two years, has traded off 16% over the last month.

The question for all of the PC companies is whether the consumer will delay purchases of $1,000. While car sales, at $25,000 a pop, may be set-back along with sales of houses, smaller ticket items might make it through a mild recession. Corporations may also be willing to continue upgrading their PC supplies.

News of the death of PC sales may be premature. New models and attractive prices could keep computer sales in positive territory.

Douglas A. McIntyre is an editor at 247wallst.com.

As concerns about PC sales mount, even Lenovo gets hurt originally appeared on BloggingStocks on Wed, 09 Jan 2008 09:58:00 EST. Please see our terms for use of feeds.