Dell’s Growth Prospects Low
When Matt Krantz over at USAToday.com rated Dell’s stock as little more than a gamble a month back, many already knew what CNNMoney is spotlighting now: That Dell would be facing most challenging growth prospects.
This assertion stems all the way from Hewlett-Packard (HP)’s recent resurgence in PCs, servers and even printers to Dell’s dependence on a slowing PC market. Dell’s lack of success in breaking into the consumer products market (e.g. Dell’s almost complete pull-out from the MP3 player market dominated by Apple) is probably another contributing factor. And let’s not forget the other brand-names vying for a piece of Dell’s PC market share (Read: Acer).
But with Dell CEO Kevin Rollins reportedly attempting to turn things around - with calls for “…improving customer service and redesigning the sales and support areas on Dell’s Web site…” as well as attempts to “…expand its (Dell’s) international presence…”, analysts seem to be still mixed on the attractiveness of Dell’s stock. However, it is clear that Dell is no longer the no-brainer blue-chip stock that any institutional investor would love to have in its portfolio.
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