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MichaelDellLosingReligionREM-003

Everyone knows the story of how Michael Dell pioneered the direct-to-your-door computer sales model out of his college dorm room.  Now back at the company’s helm after a hiatus, he’s thinking of finally looking to other channels to boost flagging sales.  So what took them so long to lose their religion?

Dell Inc. founder and Chief Executive Michael Dell has informed employees of new plans to re-ignite growth at the big computer maker, after a recent meeting with the company’s overhauled executive team.

In an email sent to Dell’s world-wide staff on Wednesday, Mr. Dell outlined moves to reach more customers and make technology simpler for users. Mr. Dell wrote that the company needs to streamline its management structure to speed up decision making.

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MichaelDellStockChart-002

Dell had lots of news this evening.  They warned.  Kevin Rollins is out.  And Michael Dell is coming back.  The stock got an after hours bump on the excitement of Dell’s return.  But really, will that change anything?  We kinda doubt it.

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Probe002_1The informal SEC investigation that Dell had originally tried to downplay now has become a full blown official probe.  Also, the company won’t be releasing earnings, which had been expected out today, until the end of the month.  They’ll issue a press release but there won’t be any insight into the quarter since there won’t be the usual conference call. The company said that the delay isn’t related to the SEC investigation.:

Dell Inc. late Wednesday clarified that the company’s decision to delay its earnings report was due to to issues it’s facing in preparing the results and not linked to an ongoing Securities and Exchange Commission probe into the computer maker’s accounting.

Dell said it would delay releasing its third-quarter results until later this month. The company was initially expected to report its numbers on Thursday.

Dell said the delay was not related to the SEC’s decision to elevate its investigation to formal from informal status. Instead, Dell said the postponement reflects "the level of complexity the company is facing in the preparation of its preliminary results," related to the SEC investigation and its own inquiry into accounting and financial reporting matters.

Dell says SEC probe now formal, delays results – CNN/Money

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At least someone likes Dell this morning.  Or at least hates them a little less.  Goldman removed the company from it’s "Sell" list and now calls them a "potential turnaround candidate".  They lowered their revenue assumptions and raised margin assumptions under the thinking that pricing will be disciplined and its product mix will be shifting away from very low end PCs.  They kept earnings unchanged at $1.30, but are higher than the Street estimate of $1.24.  From the research note this morning out of Laura Conigliaro’s group:

We are now viewing Dell as a potential turnaround candidate and have raised our price target to $26.50 from $21.00, 10.3% higher than yesterday’s close.  As a turnaround stock, our 12-month price target is derived through a combination of normalized earnings, price to sales, and DCF valuation.

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Dell: Talk about sticker shock!

Posted by WSF On August - 22 - 2006

DellpcwithhugepriceWe saw this on The Register and had to laugh.  Look at the price that Dell’s charging for this computer….

We knew that Dell would be raising prices to try to improve margins, but  £39 million for one lousy PC is a bit extreme.  Hopefully it’s just a typo, but with Dell, these days one never knows…

Troubled Dell in PC price hike shocker – The Register

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Another reason we’re no longer buying Dell

Posted by WSF On July - 21 - 2006

Dellinspiron001While everyone is kicking Dell to the curb today after this morning’s nasty warning out of the company, we thought we’d pile on and share a recent Dell experience.  A few weeks ago, we had a hard drive problem with a Dell laptop, and much to our surprise after a series of hellish Dell support experiences over the years, this call was really easy and fast.  We wondered if things might be changing at Dell for the better. A subsequent call to the company left a new and very bitter taste in our mouth….

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Michael Dell profile

Posted by WSF On July - 5 - 2006

Michaeldell001Michael Dell is profiled in a piece entitled "A day in the life of Michael Dell, founder and chairman of Dell Inc"….

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Dell: Our recent customer support experience

Posted by WSF On June - 20 - 2006

With all of this talk about poor customer service today, from the blogger who tried to drop AOL to other reports during the day on CNBC, we thought we’d recount an experience we had only yesterday.

Early in the afternoon, the hard disk in our favorite laptop crashed.  We were not happy.  Having been through this before with another computer, from the sounds the machine was making and the errors and BSOD’s we were getting, a little voice in our head told us that the drive was probably toast.  Not only were we pissed that the drive would probably have to be replaced, creating hours of reinstallation busywork, but worse, we were faced with the daunting prospect of having to call Dell for service, which given our last few frustrating experiences, made the situation even worse.  So we dialed the 800 number, held our breath, and braced ourselves for the worst.

Shockingly, it was relatively painless.  The call, which was routed to the Philippines and handled very professionally, lasted all of 20 minutes, on hold and troubleshooting time included.  It probably helped that we had alot of crash related data already at our fingertips. But since we’re usually on the phone with Dell in marathon sessions where by the time we’re through, we’re pissed beyond belief ready to rip our hair out, we were thrilled to have escaped the usual Dell support hell.

We just got our hard drive, which was overnighted.  Thankfully the Dell part was easy this time.  Now the real fun begins.  Pffffffft!

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Consumerreportsjune06cover01How timely, especially in view of Dell’s warning:  Jeff Matthews commented on the current version of Consumer Reports which  mentions on its cover “Get the most from tech support”.    The article scores tech support for the various PC makers.  And Dell didn’t fare very well.

This comes as no surprise to us.  We have nine Dells, seven of which are on right now.  We don’t mention this to try to impress you with our geekiness (some are almost as old as Methuselah), but to note that we’ve been a very loyal Dell customer over the years.  In the past year, we’ve had to call support numerous times, and each time we were ready to rip the phone out of the wall and ready to rip the numerous techs that we were connected to (usually winding up after an hour or more, back with someone that we spoke to early in the call) new orifices.  In short, we’ve not been pleased and are finally ready for a change.  We are loyal no more.  And from what we read, we know there are many more who have shared our miserable Dell tech support experiences who have already sworn off Dell.  That loss of customer loyalty sure isn’t gonna help Dell’s bottom line…

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Look out below! DELL warned…

Posted by WSF On May - 8 - 2006

Nasdaqdell1255_dell_inc_1

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Dell’s Rollins says they need “to be bolder”

Posted by WSF On March - 13 - 2006

Kevinrollinsdell01Dell’s CEO Kevin Rollins told the Financial Times that Dell hasn’t lost its edge and that its financial model remains intact, even after 2 successive quarters of missed sales targets, but that they need "to be bolder"….

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