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What's Dell Really Worth?

I will be surprised, if not completely shocked, if the $13.65 offer goes much higher. Dell's not worth anything. Before you send in your emails, I say this knowing full well that Dell has $12 billion in cash on the books and still produces more than $4 billion in operating cash flow.

But I don't find this impressive. There are many companies on Wall Street that produce these same sorts of numbers without receiving the public attention or press coverage that Dell enjoys today. Quite frankly, I'm annoyed by this.

Given the competitive advantages this company once enjoyed and allowed to slip away, I believe it's a travesty of capitalism that Michael Dell still has a say in what this company is able to do next. All the while, frustrated investors who have held on to their stock faithfully, are used as pawns for a decision that may end up taking years to produce any sort of meaningful value post privatization. Again, nobody knows what that value will be.

The company's current challenge is trying to find new ways to grow its high-margin segments, which include networking and storage. It would also serve investors is management was able to figure out ways to better leverage Dell's recent acquisitions.

Not only must the company synergize these deals with its existing businesses, but Dell has to also uncover new ways to address mobile. Until then, it's pointless to discuss value. Dell will forever be that company with a dying PC business.

At the time of publication, the author was long AAPL.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Richard Saintvilus is a co-founder of StockSaints.com where he serves as CEO and editor-in-chief. After 20 years in the IT industry, including 5 years as a high school computer teacher, Saintvilus decided his second act would be as a stock analyst - bringing logic from an investor's point of view. His goal is to remove the complicated aspect of investing and present it to readers in a way that makes sense.

His background in engineering has provided him with strong analytical skills. That, along with 15 years of trading and investing, has given him the tools needed to assess equities and appraise value. Richard is a Warren Buffett disciple who bases investment decisions on the quality of a company's management, growth aspects, return on equity, and price-to-earnings ratio.

His work has been featured on CNBC, Yahoo! Finance, MSN Money, Forbes, Motley Fool and numerous other outlets.

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