NEW YORK ( TheStreet) -- It's a tale of two companies. Both are off to a blistering start for 2013, both are the subject of takeover talk to one extent or another; both have seen better days, are a shadow of their former selves and are attempting to turn the corner, but will likely never again be what they once were.
Both were considered growth names earlier in their history. I've long been a consumer of both of these company's products. That's where the similarities end. One is a larger, high profile name that has gotten quite a bit of attention from the value investing crowd in the past year or so, as the growth crowd moved on. The other is a small cap, with a well-known brand name, and a checkered past, that has somewhat quietly put itself back into investor's minds.
Cash-rich Dell, which ended last quarter with $11.3 billion or $6.50 per share in cash, but also $9 billion in debt, is up 26% year to date, and the subject of buyout rumors. The latest story is that Silver Lake Partners is finalizing a bid to take Dell private; a deal that is expected to include Dell founder Michael Dell. While it's unclear what shares might fetch in a deal, just two months ago, Dell was trading near a four-year low, and is up 45% since.It's been quite a fall from grace for Dell shares though, which were trading in the $17 range just one year ago, in the low $40's in 2005, and low $50's in 2000. Technology changed, competition in the PC space became fierce, and the company suffered the consequences. Longer term shareholders can't be happy with a deal that is anywhere close to the current price ($12.82), but those who swooped in in recent months, have done well...so far. data by YCharts
Krispy Kreme shares are up 27% year to date, and have nearly doubled since August, as skeptical investors -- that may have been burned by the company's fall from grace in its early days as a publicly traded company -- are showing renewed interest.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV