DELL

Dell Inc.

TMT, Event Driven/Special Sit


Presented:10/17/2018
Price:$95.10
Cap:$73.07B
Current Price:$125.83
Cap:$91.67B

Presented

Date10/17/2018
Price$95.10
Market Cap$73.07B
Ent Value$111.75B
P/E RatioN/A
Book Value$11.14
Div Yield0%
Shares O/S768.36M
Ave Daily Vol1,519,884
Short Int2.96%

Current

Price$125.83
Market Cap$91.67B
Dell Technologies, Inc. develops, sells, repairs and supports computers and related products and services. It offers IT infrastructure services including hardware, software, cloud storage and virtual reality. VMWare is one of business of the company, which provides virtualization solutions from the desktop to the data center. The company was founded by Michael Saul Dell in 1984 and is headquartered in Round Rock, TX.

Publicly traded companies mentioned herein: Accenture PLC (ACN), Alibaba Group Holding Ltd (BABA), Amazon.com Inc (AMZN), AT&T Inc (T), BlackRock Inc (BLK), Dell Technologies Inc Class V (DVMT), VMware Inc (VMW)

Highlights

Dell’s DVMT tracking stock has been in the news a lot recently, as there’s a hot debate about Michael Dell and Silver Lake’s intentions, versus the interests of institutional shareholders and VMware. The presenter is long DVMT, and VMware (VMW), given the favorable fundamental dynamics and valuation, and sees substantial upside potential for patient shareholders. Regardless of the outcome of the Dell, Silver Lake, DVMT, Icahn et al. battle over the fate of the tracking stock, VMW has secular tailwinds that should drive mid-teens FCF growth. Looking out a few years, the company could be generating $12+ of FCF/share and have $60/share of cash on its balance sheet. At $145, there could be 100% upside.

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Idea Discussion

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