Tuesday, May 8, 2007

You are now leaving Dell

Well it has been awhile since we have an update for the stocks I said were "looking for love." I plan on giving you that update right now and then making an announcement.

Home Depot ---- Down .62%
Dell ---- Up 15.49%
Motorola ---- Down 4.32%

Considering all the buzz about this great bull run we are in, I don't exactly see these numbers buying me a new Bentley or even an old Bentley. But do you know what? I don't care. I don't expect these stocks to have landed anybody on easy street. These are long-term turnaround stocks. In each of them, management is going to have to work day and night to turn these companies around. If in a year from now, these stocks still aren't turning heads, I'll admit defeat.

Now on to more serious business, as I said up a few lines, I have an announcement to make. As the title of this post hints, I am saying goodbye to Dell. Ironically, the one stock that I am saying goodbye to, happens to be the only one that has worked itself into a gain position. But that is the way she goes sometimes. In further disclosure, I own puts on Dell.

After much thought, reading, etc., I have decided that Dell is a POS. Is Dell still a turnaround stock candidate? Of course, but I don't really want to be on their side at this point. From a speculative viewpoint, this is probably the best because it seems to be the biggest headache. From the early days of Dell, besides remember the tagline "Dude, it's a Dell," I remember the great customer service they were known for. Then for some reason, they decided to take one of their most valuable assets and ship it overseas to India. I have nothing against the people in India, but as popular opinion seems to state, outsourcing customer service/support functions is as frustrating as anything. I think this Motley Fool article speaks my point about poor customer service.

As for the other two, I have never owned a Motorola phone and i am disappointed/surprised that Icahn didn't make his way onto the board so I will be monitoring this. And for Home Depot, the place in had my first teenage job and spent a week in training, I hope that they aren't spending money on training anymore because it doesn't show. I also hope that they starting training again so that when I need help with something, I don't feel like I should be talking to the 2x4 in my hand. Only time with tell how these final two will pan out.

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