Dell Computer Corporation
The computer industry has become one of the most competitive industries in the world. With technology growing at amazing paces, many of the computer companies have fallen behind and even out of the industry since the development of the computer. Only the strongest companies have been able to be profitable and efficient. Dell Computer Corporation is one of the few corporations to be able to remain at the top of the market. Dell was founded in May of 1984 and is now the world's number one computer systems company. Its founder, Michael Dell, has been the chief executive officer for the longest term ever in the computer industry, and is arguably the most successful of all. It is this continuous level of superior management that has helped Dell to be advantageous. Another contributor to Dell's success is its simple concept to distribute computer systems directly to its customers, therefore better realizing their wants and needs. Its headquarters are located in Austin, Texas but Dell distributes products and services worldwide, mainly though the power of the Internet. Dell launched its Internet site, www.dell.com, in 1994 and began selling its products through it in 1996. In 1997, it became the first company to record $1 millio
01 00 99 98 97 00 99 98 97 According to the CAPM model, our graph shows that from January 1999 to near the end of 2000, Dell's stock was in equilibrium. This means that there were enough buyers and sellers of the stock to keep it at a level price. However, we believe that the stock was overpriced in this period due to its high PE ratio. This is an example of "The Overreaction Theory". It took this period of time for investors to realize that the stock was overpriced despite its positive fundamentals. After this realization, investors drove the price down, once again overreacting and making the price too low. It is our prediction that the stock is now a value stock with a relatively low PE ratio (40.80) and strong fundamentals. Based on "The Overreaction Theory", it should take about the same amount of time for investors to gain confidence and push the price up as it did to realize that it was overpriced during earlier periods.
Some common words found in the essay are:
Dell Corp, Overreaction Theory, A/R Turnover, Fortune Global, Internet Dell, Dell's EPS, Avg Current, PE PE, Standard Deviation, Michael Dell, net revenue, 00 99, 98 97, 99 98, 99 98 97, 00 99 98, pe ratio, 01 00 99, 01 00, gross margin, asset management, computer industry, current ratio, security growth security, net revenue $31888,
Approximate Word count = 2127
Approximate Pages = 9 (250 words per page double spaced)
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