Apr 082006

I’m hunting around for stocks to buy and Dell came up.

At 20 P/E it’s trading below the industry average (38). That takes care of relative valuation.

Return on equity 67%.

Recently, Longleaf of Southeastern made a bet that Dell will grow earnings at about 15% a year for the next few years. The agressive share buybacks are also awesome to see.

If I had the monies, I’d be in Dell right now and won’t get out for hte next few years. Rarely do great companies come down to buyable valuations before they continue their march onwards and upwards.

I am currently evaluating FTAR.OB (for cash per share, a cigar butt company) and UNTD (for 6.2 div yield although I skeptical of its long-term potential).

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