Dell return

Unfortunately for 10% of Dell employees, when job cuts are announced the market usually responds positively, especially with an underperforming company like Dell.

The firm reached a price of $21.79 earlier this year, and have been on the rise since the return of Mr Dell to the hotseat. They now trade at $27.30. Anecodotally I have been reading that Dell orders are soaring (delivery people are great sources of info), and adding Ubuntu Linux to their line has been a hit with geeks. The use of digg-like technology has allowed this to happen, and I believe Dell is on a return path to higher profit, higher share price, and a return to the number one PC maker.

John Ogg suggests a pairs trade – go long on Dell, and short on HP. If you are more into straight share purchases I would suggest buying Dell now, though obviously you should go do your own due diligence etc.

I do not own shares in Dell, yet.