IT Management Series

Dell Must Get In Takeover Mode

 

There's also plenty of technology that could be incorporated into Dell's existing notebooks to make them unique. The Preface technology developed by PortalPlayer (now part of Nvidia(NVDA)), which integrates a small LCD screen into a notebook case, is an example of a feature that can make a PC stand out from the crowd.

Chirag Vasavada, a hardware analyst at T. Rowe Price, which owns Dell shares, says a more deal-happy Dell might not be a bad thing.

"From an investor perspective, I want to see that cash deployed in a way that generates the most return on invested capital," says Vasavada. "If they can do a deal where they can generate excess returns relative to their cost of capital, great. If they can't, give me the cash back."

But Vasavada isn't convinced that Dell needs to come up with the next great gadget to succeed in the consumer market.

"People thought their products were dull and boring," says Vasavada. "They just need to close the gap and be competitive. They don't have to differentiate."

>To order reprints of this article, click here: Reprints

TheStreet Premium Services

Jim Cramer
Jim Cramer's Action Alerts PLUS:
Trade right alongside a Wall Street pro — enjoy access to his Charitable Trust portfolio and be sent trade alerts BEFORE he makes a move. Learn More
OptionsProfits
OptionsProfits:
Get 50+ trade ideas a week from the industry's top options experts. Plus — exclusive commentary on market trends and essential trading tools. Learn More
Real Money
Real Money:
Our team of professional Wall Street Pros — including Jim Cramer, Doug Kass, and Nicholas Vardy — delivers intelligent analysis, timely trade ideas, and colorful commentary. Learn More
Stocks Under $10
Stocks Under $10:
Break into the market with small- and mid-cap stocks... all $10 or less! David Peltier tells you exactly which low-priced stocks he's buying and selling. Learn More
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
blog comments powered by Disqus
Dow Jones S&P 500 NASDAQ 10-Year Note
12,393.45 1,310.33 2,827.34 15.81
Oil *
101.78
DOWN
26.41
DOWN
2.99
DOWN
10.02
DOWN
0.44
10 Yr
1.58%
SPDR Gold
151.62
-0.21%
-0.23%
-0.35%
-2.71%
Data delayed 20 minutes

Top Stories and Tools

Articles From

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

We respect your privacy.
Podcasts

Connect with TheStreet