NEW YORK ( TheStreet) -- Last week, Dell (DELL) stock dropped below the $13 level as investors position themselves for the increased likelihood that Michael Dell's proposal to purchase the company for $13.65 per share will not be met with approval.This price activity is telling, given that the lows created an almost 7% discount relative to Michael Dell's proposed price. Declines have been driven by reports that Michael Dell and Silver Lake Partners have no intention of saving the buyout by raising their bid for the company, in an effort to appease those opposing the deal (Southern Asset Management and Carl Icahn), who suggest that the appropriate value is closer to the $22-per-share mark.
Dell: Setting Up for a Fall
Check Out Our Best Services for Investors
Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
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
David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.