Insiders are buying up a lot of stock in Dell (DELL), a technology company offering mobility products, desktop personal computers, software and peripherals, servers and networking products, storage and services. Insiders are buying into strength since shares of Dell are up 19% in 2012.
Dell has a market cap of $30 billion and an enterprise value of $25 billion. This stock trades at a cheap valuation, with a trailing price-to-earnings of 9.26 and with a forward price-to-earnings of 7.98. Its estimated growth rate for this year is -0.90%, and for next year it's pegged at 3.3%. This is a cash-rich company, since the total cash position on its balance sheet is $14.82 billion and its total debt is $9.25 billion. After you back out the debt, Dell has $5.57 billion of cash on its balance sheet.The president just bought 100,000 shares, or $1.74 million worth of stock, at $17.10 to $17.40 per share. From a technical perspective, Dell is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the past month and change, running up from $14.50 to a recent high of $18.36 a share. After hitting that high, the stock gapped down recently to a low of $16.86, but it has since then stabilized over $17 a share. If you're bullish on Dell, I would look for long-biased trades once this stock breaks out above $17.50 to $18.36 with volume. Look for volume on a move above those levels that's near or above its three-month average action of 17.7 million shares. If that breakout doesn't trigger soon, then you can look for long entry points off a pullback toward some previous support zones at $16 to $15.50 a share. Dell, one of the top holdings at David Einhorn's Greenlight Capital, shows up on a list of 10 Top Value Stocks With Big Gains in 2012. Follow @stockpickr
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
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
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
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 + 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