JBL: The Ultimate Equity Tag-Team

Dell Computer is "The Crusher" of computer makers, the rest are Bobs.

Dell's direct made-to-order business model has proven to be the most successful model among the box makers. Hewlett-Packard (HPQ) and IBM (IBM) have fallen behind the curve and it will be virtually impossible to catch up.

The drama surrounding Carly Fiorina's departure from H-P gave Dell the opportunity to gain a foothold in the printer business. Dell shipped 5.2 million printers in its last fiscal year. This allows Dell to be in the lucrative recurring revenue of ink, paper and supplies. Dell has already shown they can deliver, I believe they will soon own this market as well.

Certain things you don't bet against: Tiger Woods, "The Crusher," and Michael Dell. Mr. Dell has proven he can be successful in virtually anything he chooses. I think Dell is a compelling story on Mr. Dell alone. However, the numbers give you an even better reason to buy.

Dell has more than $12 billion in cash and investments, with a tiny amount of debt. It has free cash flow of almost $4 billion. Dell has created a great brand loyalty with the consumer (along with the stock, I own two Dell computers). Yet around 85% of Dell's sales are from government and corporate accounts that have higher margins.

Dell has forward earnings projected at $1.88 per share. If Dell can live up to its promise of 19% earnings growth, then you will have a tech leader with a P/E-to-growth ratio under 1; that is a gift. Even if they grow at a more reasonable rate of around 15%, it is still a buy.

When you have the opportunity to buy a company with a dominant market share that has tons of cash, little or no debt, and is priced to buy, you buy it. Throw in the fact that the guy who built the company will continue to run it, you buy it now.

Dell, like Cisco, is a leader in its field with the ability to continue to dominate. You can't go wrong with The Crusher or The Main Event.

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