$DELL - A Sleeping Giant Primed for Inflation Proof Gains

You probably missed the insane execution of Dell's management team or the fact that they're undervalued given their position in the market and current multiples. "Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports Information technology solutions, products, and services worldwide." - Fidelity My thesis is that this company is undervalued when compared to their peers and especially when compared to their earnings. They also have pricing power so increase in input costs and goods is going to be easily passed on to consumers. TL DR: Old schools is new school. Dell is making bank and unnoticed by the average investor. Let's start by comparing multiples in the industry and where we stand. Let's Look At Some PE Dell: 7 HP (HPQ): 7.1 Seagate Technologies (STX): 14.1 Hewlet Packard Enterprise (HPE): 6.8 How about Price to Sales? Dell: .6 HPQ: .4 HPE: .4 STX: 1.2 Price to Cash Flow Dell: 6.4 HPQ: 6.5 HPE: 4.8 STX: 9.0 Price to Free Cash Flow Dell: 5.9 HPQ: 6.5 STX: 9.0 HPE: -14.6 Return on Equity Dell: 131.1 HPQ: -127.6 HPE: -2.0 STX: 56.2 Let's take a look at market capitalization (billion). Dell: 46.6 HPQ: 41.9 HPE: 22.4 STX: 24.6 And now Revenue (billion): Dell: 94 HPQ: 63.5 HPE: 27.8 STX: 10.7 Alright enough with random multiples. This is a long term play for me and not a quick money maker. But if we focus on their revenue, earnings, and then current pricing, they're fairly undervalued. I bought my calls based on where I thought the price could go and I'm fairly confident we'll get there with this company. 1/20/23 75 Call 1/19/24 80 Call 1/19/24 85 call

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Original Post

AptitudeSky

Feb 11, 2022

-18.75%

Change % Since Posting

-11.38

Change Since Posting

60.72

Price When Posted

DELL

Dell Technologies Inc.

49.34

5.40 12.30%

Current Price

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$DELL - A Sleeping Giant Primed for Inflation Proof Gains

bullish

You probably missed the insane execution of Dell's management team or the fact that they're undervalued given their position in the market and current multiples.

"Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports Information technology solutions, products, and services worldwide." - Fidelity

My thesis is that this company is undervalued when compared to their peers and especially when compared to their earnings. They also have pricing power so increase in input costs and goods is going to be easily passed on to consumers.

TL DR: Old schools is new school. Dell is making bank and unnoticed by the average investor.

Let's start by comparing multiples in the industry and where we stand.

Let's Look At Some PE
1. Dell: 7
2. HP (HPQ): 7.1
3. Seagate Technologies (STX): 14.1
4. Hewlet Packard Enterprise (HPE): 6.8
How about Price to Sales?
1. Dell: .6
2. HPQ: .4
3. HPE: .4
4. STX: 1.2
Price to Cash Flow
1. Dell: 6.4
2. HPQ: 6.5
3. HPE: 4.8
4. STX: 9.0
Price to Free Cash Flow
1. Dell: 5.9
2. HPQ: 6.5
3. STX: 9.0
4. HPE: -14.6
Return on Equity
1. Dell: 131.1
2. HPQ: -127.6
3. HPE: -2.0
4. STX: 56.2

Let's take a look at market capitalization (billion).

Dell: 46.6
HPQ: 41.9
HPE: 22.4
STX: 24.6

And now Revenue (billion):

Dell: 94
HPQ: 63.5
HPE: 27.8
STX: 10.7

Alright enough with random multiples. This is a long term play for me and not a quick money maker. But if we focus on their revenue, earnings, and then current pricing, they're fairly undervalued. I bought my calls based on where I thought the price could go and I'm fairly confident we'll get there with this company.

1/20/23 75 Call

1/19/24 80 Call

1/19/24 85 call