Monday, February 19, 2007

Dell Inc










Michael Dell Back In Charge; Do Not Chase Stock Yet
Michael Dell finally decided to step back into an operating role at Dell (DELL). This follows a tough period for Kevin Rollins and Jim Schneider, both of whom had a tough time anticipating where technology was going.

The old Wayne Gretzky line "you have to skate where the puck is going to be" was seriously lacking with Rollins and Schneider. Both were good executives and diligent but were not tech guys.

Do not chase today's rally in Dell's stock. Dell needs to hire a whole new management team. Wait to see if he can convince executives to join him or if he can find people from within Dell to run the company. It will take a couple of quarters for Michael Dell to have an impact.

February 1, 2007

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