Don't Overlook Dell's Desperation in Retail Move

Compare that with this Breaking Views column on the same day in The Wall Street Journal that harks back to the quote that everything Dell does with Wal-Mart must be judged against.

First, Breaking Views sets the stage historically: "In 1993, [Dell] began selling PCs at Sam's Clubs, a division of Wal-Mart. One year later, it pulled out."

Then come the operative words, the ones that should have been used in all those articles in lieu of press release patter or high-priced equivocation from Wall Street analysts.

Why isn't doing business with Wal-Mart any good, Michael? "This is a no- or low-return business. We like to be in businesses where we can make money, and we know how to do that in the direct business."

Could things have changed since then? Well, maybe -- though if anything, Wal-Mart has the same pricing power but less pull with customers.

So is Dell's move one of absolute desperation? Michael Dell is one of the few businessmen in America who has earned the benefit of the doubt. But when you, astute investor, look at this issue, do so in the way that most of the business media does not. Figure out what -- if anything -- has changed between now and then. If nothing has, the move reeks of desperation. If something is different -- well, do tell. I'm interested to hear.