Stock Report | February 2, 2013 | NNM Symbol: DELL | DELL is in the S&P 500
Dell Inc
S&P Recommendation HOLD
★★★★★
Price
$13.63 (as of Feb 1, 2013)
12-Mo. Target Price
$12.00
Investment Style
Large-Cap Growth
UPDATE: PLEASE SEE THE ANALYST'S LATEST RESEARCH NOTE IN THE COMPANY NEWS SECTION
GICS Sector Information Technology
Sub-Industry Computer Hardware
Summary One of the world's 10 leading manufacturers of personal computers, Dell also
offers server and storage products and provides IT services.
Key Stock Statistics (Source S&P, Vickers, company reports)
52-Wk Range
Trailing 12-Month EPS
Trailing 12-Month P/E
$10K Invested 5 Yrs Ago
$18.36– 8.69
$1.47
NM
$6,805
S&P Oper. EPS 2013E
S&P Oper. EPS 2014E
P/E on S&P Oper. EPS 2013E
Common Shares Outstg. (M)
1.70
1.75
8.0
1,737.3
Market Capitalization(B)
Yield (%)
Dividend Rate/Share
Institutional Ownership (%)
Price Performance
NA
Nil
$0.32
66
Beta
S&P 3-Yr. Proj. EPS CAGR(%)
S&P Credit Rating
1.36
4
A-
Qualitative Risk Assessment
30-Week Mov. Avg.
10-Week Mov. Avg.
12-Mo. Target Price
Relative Strength
GAAP Earnings vs. Previous Year
Up
Down
Volume Above Avg.
No Change
STARS
LOW
MEDIUM
HIGH
Below Avg.
Our risk assessment reflects our view of Dell's
economies of scale and strong execution in asset
management, offset by what we see as
competitive pressures on product design and
pricing, industry cyclicality, and a shift to greater
reliance on retail partners around the world.
20
14
12
10
Quantitative Evaluations
Vol.
Mil.
5
S&P Quality Ranking
442
150
100
50
0
D
3
2
3
5
4
C
B-
B+
B
B+
A-
A
Relative Strength Rank
4
STRONG
93
3
2
LOWEST = 1
1
A+
HIGHEST = 99
S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A
2009
2010
2011
2012
2013
Options: ASE, CBOE, P, Ph
Analysis prepared by Equity Analyst Angelo Zino, CFA on Nov 19, 2012, when the stock traded at $9.01.
Highlights
➤
➤
➤
We expect revenues to decrease 9% in FY 13
(Jan.) and 3% in FY 14. DELL is experiencing
weakness in its PC business, both on the consumer side as well as in the enterprise business. We think the overall macroeconomic environment is partly to blame, as is increasing
competitive pressure from Asian manufacturers. Further, we are seeing pricing pressure
and stronger sales in lower-end PCs, an area
the company is de-emphasizing. We see positives, however, as sales of servers appear to be
solid, given a shift towards next-generation
systems. We also expect healthy services and
storage growth long term.
We expect gross margins to narrow slightly in
FY 13. We see reduced leverage and pricing
pressures affecting results, as should additional research & development expenditures. Still,
a richer product mix (including a increased percentage of service revenues) and potential savings from improved supply chain management
should offset these extra costs by FY 14.
In FY 12, EPS was $2.13, excluding restructuring
and acquisition-related expenses. We project
EPS of $1.70 in FY 13, aided by a modest pace of
share repurchases, and $1.75 in FY 14.
Investment Rationale/Risk
➤
➤
➤
Our hold opinion is based on valuation. Although we believe DELL's multi-year effort to
move into new markets and seek operational
efficiencies will lead to a more favorable margin profile, benefits have been slow to materialize. Demand for IT in general has been spotty
recently, particularly the consumer and public
sector areas, which is making the process
more challenging. Expansion in the servers,
networking and services areas should lift sales
and margin potential over the long term, in our
view.
Risks to our recommendation and target price
include the potential for weaker PC market
share and margin performance than we project,
and a further softening of the economy. Acquisition integration might prove less effective
than we expect.
To arrive at our 12-month target price of $12,
we apply a multiple of 7.0X to our calendar year
2014 EPS estimate. This multiple is a discount to
Information Technology sector peers in the
S&P 500 Index and toward the low end of
DELL's historical range to reflect competitive
challenges we see in the PC markets.
Please read the Required Disclosures and Analyst Certification on the last page of this report.
Redistribution or reproduction is prohibited without written permission. Copyright ©2013 The McGraw-Hill Companies, Inc.
Revenue/Earnings Data
Revenue (Million U.S. $)
1Q
2Q
2013
14,422 14,483
2012
15,017 15,658
2011
14,874 15,534
2010
12,342 12,764
2009
16,077 16,434
2008
14,722 14,776
3Q
13,721
15,365
15,394
12,896
15,162
15,646
Earnings Per Share (U.S. $)
2013
0.36
0.42
2012
0.49
0.48
2011
0.17
0.28
2010
0.15
0.24
2009
0.38
0.31
2008
0.34
0.31
0.27
0.49
0.42
0.17
0.37
0.34
4Q
-16,031
15,692
14,900
13,428
15,989
Year
-62,071
61,494
52,902
61,101
61,133
E0.38
0.43
0.48
0.17
0.18
0.31
E1.70
1.88
1.35
0.73
1.25
1.31
Fiscal year ended Jan. 31. Next earnings report expected: Late
February. EPS Estimates based on S&P Operating Earnings;
historical GAAP earnings are as reported.
Dividend Data (Dates: mm/dd Payment Date: mm/dd/yy)
Amount
($)
Date
Decl.
Ex-Div.
Date
Stk. of
Record
Payment
Date
0.080
0.080
09/06
12/06
09/27
12/28
10/01
01/02
10/22/12
01/23/13
Dividends have been paid since 2012. Source: Company reports.
Stock Report | February 2, 2013 | NNM Symbol: DELL
Dell Inc
Business Summary November 19, 2012
Corporate Information
CORPORATE OVERVIEW. Dell Inc. is a key player in the personal computer markets that is diversifying into
information technology services and data center products. It was number three in global PC unit shipments in 2011, with about a 12% market share according to research firm Gartner, down slightly from 2010.
Investor Contact
L.A. Tyson (512-723-1130)
DELL's sales are from PCs (54% of FY 12 (Jan.) total revenue), with 23% from Desktop PCs and 31% from
Mobility. Other categories include Software and Peripherals (17%), Servers and Networking (13%), Services (13%), and Storage (3%). Within the PC category, sales of Mobility (mainly notebook PCs) are rising
faster than sales of Desktop PCs. Revenue from notebooks pulled approximately even with desktop revenue for the first time in the FY 08 third quarter, and we expect notebooks to lead in the future.
Office
One Dell Way, Round Rock, TX 78682.
Broken out by global segment, Large Enterprise represented 30% of DELL's FY 12 total revenue (29% in FY
11), Public 27% (27%), Small and Medium Business 24% (24%), and Consumer 19% (20%).
Fax
302-636-5454.
The customer base is broad. The company is expanding in rapid-growth emerging markets including
Brazil, Russia, India and China (BRIC), and DELL's revenue from the BRIC countries rose to 14% of the total
in FY 12, from 12% in the prior year. Revenues derived from outside the U.S. represented 51% of total revenue in FY 12, up from 50% in FY 11. Most of the company's long-lived assets are located in the U.S.
Email
investor_relations_fulfillment@dell.com
IMPACT OF MAJOR DEVELOPMENTS. In January 2007, Michael Dell reassumed his role as CEO, while retaining his duties as chairman of the board. We believe this development reinvigorated the corporate culture and streamlined the decision-making process.
Telephone
512-338-4400.
Website
http://www.dell.com
Officers
Historically, DELL thrived on a direct-sale strategy that allowed the company to develop what it calls "customer intimacy" by hearing directly from buyers about what computer features they wanted. The strategy
also permitted streamlined production and distribution procedures, which aided margins. A key challenge
we see for management at DELL going forward is how to expand retail and international operations while
maintaining customer intimacy and elements of low-cost production, such as lean inventory. In FY 08, the
company began offering Dell Dimension desktop computers and Inspiron notebook computers in retail
stores in the Americas, and announced partnerships with retailers in the U.K., Japan and China. By the end
of FY 10, the company's products were available at over 56,000 retail locations worldwide. Retail partners
include Best Buy, Staples, Wal-Mart, DSGI, GOME, and Carrefour, among others.
Chrmn & CEO
M.S. Dell
SVP & CFO
B.T. Gladden
Pres
S.J. Felice
SVP, Secy & General
Counsel
L.P. Tu
On November 3, 2009, the company completed its acquisition of Perot Systems for about $3.9 billion in
cash. The combination beefed up DELL's IT services operations significantly and broadened the product
portfolio, in our view.
Board Members
J. W. Breyer
J. F. Clark
M. S. Dell
W. H. Gray, III
K. S. Luft
S. Narayen
CORPORATE STRATEGY. The company continues to pursue market opportunities to capitalize on highermargin areas, including data storage, data management, networking, and security. We believe this not only helps DELL's profit margins, but also its competitive position versus rivals.
FINANCIAL TRENDS. We believe margins may be a bit erratic in the near term, as the company expands
into new markets, but should improve in the long term as volumes increase and more business is generated overseas. Also, a larger services operation should help to steady revenue and margin fluctuations.
The company increased its long-term debt to about $6.4 billion at the end of FY 12, from $362 million at the
end of FY 08, which we view as part of recent strategies that are based in part on acquisitions. However,
we note that DELL held nearly $15 billion in cash, cash equivalents and short-term investments as of February 3, 2012.
COO & CTO
J.R. Clarke
Domicile
Delaware
Founded
1984
Employees
109,400
Stockholders
28,041
Redistribution or reproduction is prohibited without written permission. Copyright ©2013 The McGraw-Hill Companies, Inc.
D. J. Carty
L. C. Conigliaro
K. M. Duberstein
G. J. Kleisterlee
A. J. Mandl
H. R. Perot, Jr.
Stock Report | February 2, 2013 | NNM Symbol: DELL
Dell Inc
Quantitative Evaluations
S&P Fair Value
Rank
5+
Expanded Ratio Analysis
1
2
3
4
5
LOWEST
HIGHEST
Based on S&P's proprietary quantitative model, stocks are ranked
from most overvalued (1) to most undervalued (5).
Fair Value
Calculation
$18.10 Analysis of the stock's current worth, based on S&P's proprietary
quantitative model suggests that DELL is Undervalued by $4.47 or
32.8%.
Investability
Quotient
Percentile
97
LOWEST = 1
Technical
Evaluation
LOW
BULLISH
Insider Activity
2012
0.30
3.47
4.43
5.38
1,853.0
2011
0.47
6.41
8.54
10.85
1,955.0
2010
0.50
7.34
13.13
18.55
1,962.0
2009
0.47
6.80
8.58
11.51
1,986.0
Figures based on calendar year-end price
Key Growth Rates and Averages
HIGHEST = 100
DELL scored higher than 97% of all companies for which an S&P
Report is available.
Volatility
Price/Sales
Price/EBITDA
Price/Pretax Income
P/E Ratio
Avg. Diluted Shares Outstg (M)
AVERAGE
NEUTRAL
1 Year
3 Years
5 Years
9 Years
0.94
32.52
2.00
17.80
0.75
1.80
5.29
-0.17
Ratio Analysis (Annual Avg.)
Net Margin (%)
% LT Debt to Capitalization
Return on Equity (%)
5.63
40.56
41.86
4.21
39.38
36.69
4.30
31.51
49.02
4.99
21.61
52.06
HIGH
Since January, 2013, the technical indicators for DELL have been
BULLISH.
UNFAVORABLE
Past Growth Rate (%)
Sales
Net Income
FAVORABLE
Company Financials Fiscal Year Ended Jan. 31
Per Share Data (U.S. $)
Tangible Book Value
Cash Flow
Earnings
S&P Core Earnings
Dividends
Payout Ratio
Calendar Year
Prices:High
Prices:Low
P/E Ratio:High
P/E Ratio:Low
2012
0.69
2.39
1.88
1.88
Nil
Nil
2011
17.60
12.99
9
7
2011
0.99
1.84
1.35
1.38
Nil
Nil
2010
17.52
11.34
13
8
2010
NM
1.16
0.73
0.73
Nil
Nil
2009
17.26
7.84
24
11
2009
0.95
1.64
1.25
1.23
Nil
Nil
2008
26.04
8.72
21
7
2008
1.03
1.58
1.31
1.28
Nil
Nil
2007
30.77
21.61
23
16
2007
1.60
1.34
1.14
1.13
Nil
Nil
2006
30.77
21.61
27
19
2006
1.77
1.62
1.46
1.03
Nil
Nil
2005
42.30
28.62
29
20
2005
2.61
1.32
1.18
0.88
Nil
Nil
2004
42.57
31.14
36
26
2004
2.46
1.11
1.01
0.68
Nil
Nil
2003
37.18
22.59
37
22
2003
1.89
0.88
0.80
0.49
Nil
Nil
2002
31.06
21.90
39
27
62,071
5,416
936
279
4,240
17.6%
3,492
3,487
61,494
4,460
970
155
3,350
21.3%
2,635
2,675
52,902
3,620
852
160
2,024
29.2%
1,433
1,432
61,101
4,193
769
93.0
3,324
25.5%
2,478
2,445
61,133
4,344
599
45.0
3,856
22.8%
2,947
2,871
57,420
3,541
471
45.0
3,345
22.8%
2,583
2,563
55,908
4,740
393
28.0
4,574
21.9%
3,572
2,494
49,205
4,588
334
16.0
4,445
31.5%
3,043
2,227
41,444
3,807
263
14.0
3,724
29.0%
2,645
1,806
35,404
3,055
211
17.0
3,027
29.9%
2,122
1,356
Balance Sheet & Other Financial Data (Million U.S. $)
Cash
14,818
Current Assets
29,448
Total Assets
44,533
Current Liabilities
22,001
Long Term Debt
6,387
Common Equity
8,917
Total Capital
15,748
Capital Expenditures
675
Cash Flow
4,428
Current Ratio
1.3
% Long Term Debt of Capitalization
37.5
% Net Income of Revenue
5.6
% Return on Assets
8.4
% Return on Equity
41.9
14,365
29,021
38,599
19,483
5,146
7,766
12,912
444
3,605
1.5
39.9
4.3
7.3
39.3
11,008
24,245
33,652
18,960
3,417
5,641
9,058
367
2,285
1.3
37.7
2.7
4.8
28.9
9,092
20,151
26,500
14,859
1,898
4,271
6,169
440
3,247
1.4
30.8
4.1
9.2
61.9
7,972
19,880
27,561
18,526
362
3,735
4,191
831
3,546
1.1
8.6
4.8
11.1
73.1
9,546
19,939
25,635
17,791
569
4,328
5,008
896
3,054
1.1
11.4
4.5
10.6
61.1
7,042
17,706
23,109
15,927
504
4,129
4,633
728
3,965
1.1
10.9
6.4
15.4
67.3
4,747
16,897
23,215
14,136
505
6,485
6,990
525
3,377
1.2
7.2
6.2
14.3
47.7
4,317
10,633
19,311
10,896
505
6,280
6,785
329
2,908
1.0
7.4
6.4
15.2
47.4
4,232
8,924
15,470
8,933
506
4,873
5,379
305
2,333
1.0
9.4
6.0
14.6
44.4
Income Statement Analysis (Million U.S. $)
Revenue
Operating Income
Depreciation
Interest Expense
Pretax Income
Effective Tax Rate
Net Income
S&P Core Earnings
Data as orig reptd.; bef. results of disc opers/spec. items. Per share data adj. for stk. divs.; EPS diluted. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked. UR-Under Review.
Redistribution or reproduction is prohibited without written permission. Copyright ©2013 The McGraw-Hill Companies, Inc.
Stock Report | February 2, 2013 | NNM Symbol: DELL
Dell Inc
Sub-Industry Outlook
Stock Performance
Our fundamental outlook for the S&P Computer
Hardware sub-industry for the next 12 months is
neutral. We believe that the computer hardware
industry began to recover from a cyclical downturn
in the second half of 2009. We think PC sales will be
challenged going forward, hurt by the
cannibalization on lower priced tablet devices.
GICS Sector: Information Technology
Sub-Industry: Computer Hardware
We think that a global need for better computing
and communications, especially mobile
communications, creates an appetite for a wide
range of technology products.
Based on S&P 1500 Indexes
Month-end Price Performance as of 12/31/12
We foresee growing demand for Internet-based
computing solutions because they offer companies
opportunities to reduce costs and improve customer
service. Accordingly, servers and data-center
computing hardware should benefit from rising
demand. However, we also see price competition in
servers. We think that hardware vendors have been
seeking to offset the negative impact on profits by
offering higher-margin services, software, and
storage products.
Personal computers represent a big part of the
industry, and global PC unit shipments increased
only about 4% in 2009, followed by growth of about
14% in 2010, as tracked by market research firm IDC.
PC unit sales were just under 2% in 2011. IDC
projects that shipments fell 3% in 2012. For 2013, we
project that shipments will decline 3% to 5%.
Since mid-2010, PC unit sales appear to have
suffered from consumers substituting media tablets,
which are smaller and less robust than traditional
PCs and not generally counted as PCs, for laptop
PCs. While this substitution effect may pressure PC
sales, the computer hardware industry overall
should benefit from the growth in tablets. Also, the
growing popularity of robust mobile computing
devices stimulates data traffic to be handled by
servers, creating another spur to the industry.
300
250
200
150
Year to date through January 11, the S&P Computer
Hardware Index fell 1.2%, compared to a 3.3% gain
for the S&P 1500 Index. In 2012, the S&P Computer
Hardware Index rose 20.3%, versus a 13.7%
increase in the S&P 1500.
100
50
--Angelo Zino, CFA
0
2008
Price competition and a long-term trend toward
lower average selling prices for PCs should keep
global PC industry revenue growth rates below the
pace of unit sales. We think computer hardware
vendors will continue their efforts to take costs out
of their infrastructures as they strive for profitability
despite price competition and rising component
costs.
Sub-Industry
2009
Sector
2010
2011
2012
2013
S&P 1500
NOTE: All Sector & Sub-Industry information is based on the
Global Industry Classification Standard (GICS)
We see longer-term fundamentals in the computer
hardware industry remaining attractive, albeit with
lively price competition and pressure on margins.
Sub-Industry : Computer Hardware Peer Group*: Computer Hardware - Large System Vendors
Peer Group
Dell Inc
3D Systems
Apple Inc
Avid Technology
Concurrent Computer
Cray Inc
Diebold, Inc
Hewlett-Packard
NCR Corp
Silicon Graphics International
SteelCloud Inc
Stratasys Ltd
Super Micro Computer
Toshiba Corp
Xplore Technologies
Stock
Symbol
Stk.Mkt.
Cap.
(Mil. $)
Recent
Stock
Price($)
52
Week
High/Low($)
Beta
Yield
(%)
DELL
NA
13.63
18.36/8.69
1.36
Nil
9
18.10
B+
97
5.6
37.5
DDD
AAPL
AVID
CCUR
CRAY
DBD
HPQ
NCR
SGI
SCLD
SSYS
SMCI
TOSBF
XPLR
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
58.54
453.62
7.71
7.49
18.66
29.59
16.46
28.01
14.53
0.07
80.76
12.56
4.33
4.91
71.98/20.10
705.07/435.00
12.64/5.85
7.95/3.40
18.86/6.55
42.93/27.66
30.00/11.35
28.35/18.63
15.19/5.02
0.20/0.05
92.30/32.87
18.87/7.85
4.56/3.00
30.00/3.30
1.73
1.21
1.23
1.12
1.63
1.06
1.07
1.38
1.84
2.15
1.48
1.45
NA
1.00
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
86
10
NM
44
4
11
NM
29
NM
NM
95
31
NM
NM
50.70
481.70
NA
NA
14.40
27.30
NA
31.30
NA
NA
57.90
15.30
NA
NA
BB+
C
C
C
B
B+
BNR
C
NR
NR
NR
NR
76
97
11
8
14
93
26
28
6
13
81
36
17
11
15.4
26.7
NA
NM
6.1
5.4
NM
0.9
NM
NA
13.2
2.9
1.4
NM
34.0
NA
NA
NA
NA
40.5
42.5
49.5
NA
NA
NA
5.4
39.7
NA
P/E
Ratio
NA-Not Available NM-Not Meaningful NR-Not Rated. *For Peer Groups with more than 15 companies or stocks, selection of issues is based on market capitalization.
Source: S&P.
Redistribution or reproduction is prohibited without written permission. Copyright ©2013 The McGraw-Hill Companies,Inc.
Fair
Value
Calc.($)
S&P Return on
Quality IQ
Revenue
Ranking %ile
(%)
LTD to
Cap
(%)
Stock Report | February 2, 2013 | NNM Symbol: DELL
Dell Inc
S&P Analyst Research Notes and other Company News
February 1, 2013
UP 0.67 to 13.91... Michael Dell is taking the computer and IT company that bears
his name private. He's talked about it before, but all the indications are that this
time he is serious. Using a combination of shares he already owns and personal
cash, Dell will according to most reports on the deal, nudge his ownership stake
north of 50 percent: WSJ's All Things Digital website.
January 25, 2013
12:55 pm ET ... S&P KEEPS STRONG BUY RECOMMENDATION ON SHARES OF
MICROSOFT CORP. (MSFT 27.90*****): According to an unconfirmed CNBC report
earlier this week, MSFT is in discussions to invest between $1B and $3B of
mezzanine financing in a potential private equity deal to buy Dell (DELL 13.20,
Hold), led by Silver Lake Partners. We think an investment by MSFT would make
sense, given its recent entry into the hardware space with the Surface. A
stronger partnership between the two may give MSFT an opportunity to be more
successful in the mobile hardware space. We note, however, that this
relationship could create issues with some of MSFT's other manufacturing
partners. /A. Zino-CFA
January 15, 2013
UP 0.86 to 13.15... Talks to take No. 3 computer maker DELL private are in an
advanced stage with at least four major banks lined up to provide financing, two
sources familiar with the matter told Reuters.
January 14, 2013
UP 1.31 to 12.19... DELL, the personal-computer maker that lost almost a third of
its value last year, is in buyout talks with private-equity firms, two people with
knowledge of the matter said: Bloomberg.
January 14, 2013
03:18 pm ET ... S&P MAINTAINS HOLD RECOMMENDATION ON SHARES OF DELL
INC. (DELL 12.21***): Shares are up sharply after an unconfirmed Bloomberg
report that DELL is in buyout talks with two private equity firms. We note that
although DELL faces challenges in its core personal computer business; it has a
net cash position of over $5B. DELL also generates healthy cash flow, which
could make the shares attractive for a take-out. Although we think a private
equity deal is plausible, we believe it is unlikely to occur at a price much higher
than current levels given DELL's market capitalization and enterprise value. Our
12-month target price is $12. /A. Zino-CFA
share) gives it an EV/EBITDA multiple of just 3X, which is 46% below his coverage
average. While he remains cautious on PC and server demand trends, believes
many of his longheld secular concerns have become consensus. Sees $1.69 FY 13
(Jan) EPS, $1.53 FY 14, $1.61 FY 15. Raises $9 12-month target to $13, based on
EV/EBITDA multiple of 4X. B.Brodie
November 28, 2012
Dell SonicWALL announced the appointment of Dell regional sales manager Amit
Singh to lead its business operations in India. Singh brings more than 13 years of
technology industry expertise in channel, sales and marketing to his new role. He
will be responsible for leading sales, marketing and business operations of this
fast-growing market for Dell SonicWALL. He will report to Richard Ting, vice
president of Asia Sales for Dell SonicWALL. Prior to Dell SonicWALL, Singh was
regional sales manager for Dell India. Before joining Dell, Singh served as
regional business manager for Redington India, Pvt Ltd, Bangalore.
November 16, 2012
DELL posts $0.39 vs. $054 Q3 non-GAAP EPS on 11% lower revenue. Capital IQ
consensus forecast was $0.40 EPS, $13.892B revenue (vs. reported $13.721B)
November 16, 2012
09:32 am ET ... DELL INC. (DELL 9.25) DOWN 0.31, DELL (DELL) POSTS Q3.
RAYMOND JAMES CUTS ESTIMATES, TARGET, MAINTAINS STRONG BUY...
Analyst Brian Alexander says $13.72B Q3 revenue at low end of guidance, 1%
below his estimate of $13.86B (consensus was $13.89B). Notes $0.39 non-GAAP
EPS in line with his recently reduced estimate (consensus was $0.40). Says,
however, operating EPS were $0.02 below his estimate with miss driven by
weaker gross margins, offset partially by better SG&A. But notes co.'s enterprise
strategy continues to move along, as Enterprise Solutions and Services increased
3% y/y. Cuts $1.51 FY 13 (Jan) EPS estimate to $1.40, $1.54 FY 14 to $1.44, $14
target to $13. B.Brodie
November 16, 2012
08:08 am ET ... S&P REITERATES HOLD RECOMMENDATION ON SHARES OF DELL
INC. (DELL 9.56***): We cut our FY 13 (Nov.) operating EPS estimate $0.01 to $1.70
and FY 14's by $0.02 to $1.75. We trim our 12-month target price by $1 to $12 on a
P/E near peers. Dell posts Nov-Q operating EPS of $0.39, vs. $0.54, below our $0.40
view. Sales fell 5% from Aug-Q, worse than our view. Despite recent revenue and
margin deterioration in the consumer business, we are encouraged by ongoing
efforts to shift exposure to the more profitable Enterprise and Software segment.
We think the launch of new cloud-based applications and servers will aid
long-term growth and market share gains. /A. Zino-CFA
January 9, 2013
Dell Inc. announced that Senior Vice President for Corporate Strategy David
Johnson has left the company to take a senior position with Blackstone Group LP.
December 6, 2012
Dell Inc. announced the appointment of Suresh Vaswani as president of Dell
Services. Mr. Vaswani previously led Dell Services' application and business
process outsourcing (BPO) line of business. In his new role, Vaswani will report
to Chairman and CEO Michael Dell, and will be responsible for developing and
delivering end-to-end IT services and business solutions for global corporations,
state and local governments. He also is responsible for Dell's IT delivery,
including the company's infrastructure and applications worldwide. Mr. Vaswani
joined Dell after 25 years at Wipro, where he served as the co-CEO of Wipro's IT
business and was on the Board of Wipro Limited. Mr. Vaswani succeeds Steve
Schuckenbrock, who held executive leadership roles at Dell since joining the
company in 2007. On December 1, 2012, Stephen F. Schuckenbrock resigned as
President, Services, effective as of December 5, 2012, and announced his
intention to leave Dell to seek new opportunities. The company anticipates that
Mr. Schuckenbrock will remain with Dell until March 31, 2013 to assist with the
transition of his responsibilities.
December 3, 2012
UP 0.60 to 10.24... Goldman upgrades DELL to buy from sell. Co. unavailable....
December 3, 2012
08:50 am ET ... DELL INC. (DELL 9.64) UNCHANGED, GOLDMAN UPGRADES DELL
(DELL) TO BUY FROM SELL... Analyst Bill Shope tells salesforce DELL shares have
declined by 31% since he assumed coverage with a sell rating on 12/12/10 vs.
14% gain in S&P 500. Furthermore, notes co.'s net cash balance of $5.15B ($3 per
Source: S&P.
Redistribution or reproduction is prohibited without written permission. Copyright ©2013 The McGraw-Hill Companies,Inc.
Stock Report | February 2, 2013 | NNM Symbol: DELL
Dell Inc
Analysts' Recommendations
Monthly Average Trend
Wall Steet Consensus Opinion
Buy
Buy/Hold
Hold
Weak Hold
B
BH
H
WH
Sell
S
No Opinion
BUY/HOLD
DELL Trend
Companies Offering Coverage
Wall Street Average
B
BH
H
WH
S
Number of Analysts Following Stock
60
40
20
Stock Price ($)
20
16
12
8
M
A
M
J
J
A
S
O
N
D
J
F
M
A
M
J
2011
J
A
S
O
N
D
J
2012
F
2013
Of the total 57 companies following DELL, 38 analysts currently publish recommendations.
No. of Ratings
9
5
21
1
1
1
38
Buy
Buy/Hold
Hold
Weak Hold
Sell
No Opinion
Total
% of Total
24
13
55
3
3
3
100
1 Mo. Prior 3 Mos. Prior
0
10
2
3
13
19
0
2
0
1
1
1
16
36
Wall Street Consensus Estimates
Estimates
2012
Wall Street Consensus vs. Performance
2013
2014
2012 Actual $1.88
2.25
2
1.75
1.5
O
N
D
J
F
M
A
2011
Fiscal Years
2014
2013
2014 vs. 2013
Q4'14
Q4'13
Q4'14 vs. Q4'13
Over 30 firms follow this stock; not all firms are
displayed.
Argus Research Company
Atlantic Equities LLP
Auriga USA LLC
BMO Capital Markets, U.S. Equity Research
Barclays
BofA Merrill Lynch
Brean Capital LLC
Capstone Investments
Caris & Company
Citigroup Inc
Collins Stewart LLC
Cowen and Company, LLC
Craig-Hallum Capital Group LLC
Credit Agricole Securities (USA) Inc.
Credit Suisse
Cross Research LLC
Crowell, Weedon & Co.
DISCERN Investment Analytics
Daiwa Capital Markets America Inc.
Daiwa Securities Capital Markets Co. Ltd.
Day By Day
Deutsche Bank
FBN Securities, Inc.
First Global Stockbroking (P) Ltd.
Gleacher & Company, Inc.
Goldman Sachs
IDC
ISI Group Inc.
JP Morgan
Jefferies & Company, Inc.
M
J
J
A
S
O
N
D
2012
J
F
2013
Avg Est.
1.67
1.71
-2%
High Est.
1.96
1.80
9%
Low Est.
1.40
1.68
-17%
# of Est.
35
35
0%
Est. P/E
8.2
8.0
2%
0.45
0.38
18%
0.56
0.42
33%
0.34
0.36
-6%
25
32
-22%
30.3
35.9
-16%
A company's earnings outlook plays a major part in any investment decision. Standard & Poor's organizes the earnings estimates of over 2,300
Wall Street analysts, and provides their consensus of earnings over the next two years. This graph shows the trend in analyst estimates over
the past 15 months.
Source: S&P, Capital IQ Estimates, Inc.
Redistribution or reproduction is prohibited without written permission. Copyright ©2013 The McGraw-Hill Companies,Inc.
For fiscal year 2013, analysts estimate that DELL
will earn $1.71. For the 3rd quarter of fiscal year
2013, DELL announced earnings per share of
$0.27, representing 16% of the total annual
estimate. For fiscal year 2014, analysts estimate
that DELL's earnings per share will decline by 2%
to $1.67.
Stock Report | February 2, 2013 | NNM Symbol: DELL
Dell Inc
Glossary
S&P STARS
Since January 1, 1987, Standard and Poor's Equity
Research Services has ranked a universe of common
stocks based on a given stock's potential for future
performance. Under proprietary STARS (STock
Appreciation Ranking System), S&P equity analysts rank
stocks according to their individual forecast of a stock's
future total return potential versus the expected total
return of a relevant benchmark (e.g., a regional index
(S&P Asia 50 Index, S&P Europe 350 Index or S&P 500
Index)), based on a 12-month time horizon. STARS was
designed to meet the needs of investors looking to put
their investment decisions in perspective. Data used to
assist in determining the STARS ranking may be the
result of the analyst's own models as well as internal
proprietary models resulting from dynamic data inputs.
S&P 12-Month Target Price
The S&P equity analyst's projection of the market price a
given security will command 12 months hence, based on
a combination of intrinsic, relative, and private market
valuation metrics, including S&P Fair Value.
Investment Style Classification
Characterizes the stock as Growth or Value, and
indicates its capitalization level. Growth is evaluated
along three dimensions (earnings, sales and internal
growth), while Value is evaluated along four dimensions
(book-to-price, cash flow-to-price, dividend yield and
sale-to-price). Growth stocks score higher than the
market average on growth dimensions and lower on
value dimensions. The reverse is true for Value stocks.
Certain stocks are classified as Blend, indicating a
mixture of growth and value characteristics and cannot
be classified as purely growth or value.
S&P EPS Estimates
Standard & Poor's earnings per share (EPS) estimates
reflect analyst projections of future EPS from continuing
operations, and generally exclude various items that are
viewed as special, non-recurring, or extraordinary. Also,
S&P EPS estimates reflect either forecasts of S&P equity
analysts; or, the consensus (average) EPS estimate,
which are independently compiled by Capital IQ, a data
provider to Standard & Poor's Equity Research. Among
the items typically excluded from EPS estimates are
asset sale gains; impairment, restructuring or
merger-related charges; legal and insurance
settlements; in process research and development
expenses; gains or losses on the extinguishment of debt;
the cumulative effect of accounting changes; and
earnings related to operations that have been classified
by the company as discontinued. The inclusion of some
items, such as stock option expense and recurring types
of other charges, may vary, and depend on such factors
as industry practice, analyst judgment, and the extent to
which some types of data is disclosed by companies.
S&P Core Earnings
Standard & Poor's Core Earnings is a uniform
methodology for adjusting operating earnings by
focusing on a company's after-tax earnings generated
from its principal businesses. Included in the Standard &
Poor's definition are employee stock option grant
expenses, pension costs, restructuring charges from
ongoing operations, write-downs of depreciable or
amortizable operating assets, purchased research and
development, M&A related expenses and unrealized
gains/losses from hedging activities. Excluded from the
definition are pension gains, impairment of goodwill
charges, gains or losses from asset sales, reversal of
prior-year charges and provision from litigation or
insurance settlements.
Qualitative Risk Assessment
The S&P equity analyst's view of a given company's
operational risk, or the risk of a firm's ability to continue
as an ongoing concern. The Qualitative Risk Assessment
is a relative ranking to the S&P U.S. STARS universe, and
should be reflective of risk factors related to a
company's operations, as opposed to risk and volatility
measures associated with share prices.
Quantitative Evaluations
In contrast to our qualitative STARS recommendations,
which are assigned by S&P analysts, the quantitative
evaluations described below are derived from
proprietary arithmetic models. These computer-driven
evaluations may at times contradict an analyst's
qualitative assessment of a stock. One primary reason
for this is that different measures are used to determine
each. For instance, when designating STARS, S&P
analysts assess many factors that cannot be reflected in
a model, such as risks and opportunities, management
changes, recent competitive shifts, patent expiration,
litigation risk, etc.
S&P Quality Ranking
Growth and stability of earnings and dividends are
deemed key elements in establishing S&P's Quality
Rankings for common stocks, which are designed to
capsulize the nature of this record in a single symbol. It
should be noted, however, that the process also takes
into consideration certain adjustments and modifications
deemed desirable in establishing such rankings. The
final score for each stock is measured against a scoring
matrix determined by analysis of the scores of a large
and representative sample of stocks. The range of
scores in the array of this sample has been aligned with
the following ladder of rankings:
A+
A
AB+
NR
Highest
High
Above Average
Average
Not Ranked
B
BC
D
Below Average
Lower
Lowest
In Reorganization
S&P Fair Value Rank
Using S&P's exclusive proprietary quantitative model,
stocks are ranked in one of five groups, ranging from
Group 5, listing the most undervalued stocks, to Group 1,
the most overvalued issues. Group 5 stocks are expected
to generally outperform all others. A positive (+) or
negative (-) Timing Index is placed next to the Fair Value
ranking to further aid the selection process. A stock with
a (+) added to the Fair Value Rank simply means that this
stock has a somewhat better chance to outperform other
stocks with the same Fair Value Rank. A stock with a (-)
has a somewhat lesser chance to outperform other
stocks with the same Fair Value Rank. The Fair Value
rankings imply the following: 5-Stock is significantly
undervalued; 4-Stock is moderately undervalued; 3-Stock
is fairly valued; 2-Stock is modestly overvalued; 1-Stock
is significantly overvalued.
S&P Fair Value Calculation
The price at which a stock should trade at, according to
S&P's proprietary quantitative model that incorporates
both actual and estimated variables (as opposed to only
actual variables in the case of S&P Quality Ranking).
Relying heavily on a company's actual return on equity,
the S&P Fair Value model places a value on a security
based on placing a formula-derived price-to-book
multiple on a company's consensus earnings per share
estimate.
Insider Activity
Gives an insight as to insider sentiment by showing
whether directors, officers and key employees who have
proprietary information not available to the general
public, are buying or selling the company's stock during
the most recent six months.
Funds From Operations FFO
FFO is Funds from Operations and equal to a REIT's net
income, excluding gains or losses from sales of property,
plus real estate depreciation.
Investability Quotient (IQ)
The IQ is a measure of investment desirability. It serves
Redistribution or reproduction is prohibited without written permission. Copyright © 2013 Standard & Poor's Financial Services LLC.
STANDARD & POOR'S, S&P, S&P 500, S&P Europe 350 and STARS are registered trademarks of Standard & Poor's Financial Services LLC.
as an indicator of potential medium-to-long term return
and as a caution against downside risk. The measure
takes into account variables such as technical
indicators, earnings estimates, liquidity, financial ratios
and selected S&P proprietary measures.
S&P's IQ Rationale:
Dell Inc
Proprietary S&P Measures
Technical Indicators
Liquidity/Volatility Measures
Quantitative Measures
IQ Total
Raw Score
37
16
14
69
136
Max Value
115
40
20
75
250
Volatility
Rates the volatility of the stock's price over the past year.
Technical Evaluation
In researching the past market history of prices and
trading volume for each company, S&P's computer
models apply special technical methods and formulas to
identify and project price trends for the stock.
Relative Strength Rank
Shows, on a scale of 1 to 99, how the stock has
performed versus all other companies in S&P's universe
on a rolling 13-week basis.
Global Industry Classification Standard (GICS)
An industry classification standard, developed by
Standard & Poor's in collaboration with Morgan Stanley
Capital International (MSCI). GICS is currently comprised
of 10 Sectors, 24 Industry Groups, 68 Industries, and 154
Sub-Industries.
S&P Issuer Credit Rating
A Standard & Poor's Issuer Credit Rating is a current
opinion of an obligor's overall financial capacity (its
creditworthiness) to pay its financial obligations. This
opinion focuses on the obligor's capacity and willingness
to meet its financial commitments as they come due. It
does not apply to any specific financial obligation, as it
does not take into account the nature of and provisions
of the obligation, its standing in bankruptcy or liquidation,
statutory preferences, or the legality and enforceability
of the obligation. In addition, it does not take into
account the creditworthiness of the guarantors, insurers,
or other forms of credit enhancement on the obligation.
The Issuer Credit Rating is not a recommendation to
purchase, sell, or hold a financial obligation issued by an
obligor, as it does not comment on market price or
suitability for a particular investor. Issuer Credit Ratings
are based on current information furnished by obligors or
obtained by Standard & Poor's from other sources it
considers reliable. Standard & Poor's does not perform
an audit in connection with any Issuer Credit Rating and
may, on occasion, rely on unaudited financial
information. Issuer Credit Ratings may be changed,
suspended, or withdrawn as a result of changes in, or
unavailability of, such information, or based on other
circumstances.
Exchange Type
ASE - American Stock Exchange; AU - Australia Stock
Exchange; BB - Bulletin Board; NGM - Nasdaq Global
Market; NNM - Nasdaq Global Select Market; NSC Nasdaq Capital Market; NYS - New York Stock
Exchange; OTN - Other OTC (Over the Counter); OTC Over the Counter; QB - OTCQB; QX - OTCQX; TS - Toronto
Stock Exchange; TXV - TSX Venture Exchange; NEX NEX Exchange.
S&P Equity Research Services
Standard & Poor's Equity Research Services U.S.
includes Standard & Poor's Investment Advisory
Services LLC; Standard & Poor's Equity Research
Services Europe includes McGraw-Hill Financial
Research Europe Limited trading as Standard & Poor's;
Standard & Poor's Equity Research Services Asia
includes McGraw-Hill Financial Singapore Pte. Limited's
Stock Report | February 2, 2013 | NNM Symbol: DELL
Dell Inc
offices in Singapore, Standard & Poor's Investment
Advisory Services (HK) Limited in Hong Kong, Standard &
Poor's Malaysia Sdn Bhd, and Standard & Poor's
Information Services (Australia) Pty Ltd.
underperform the total return of a relevant benchmark
over the coming 12 months, and the share price not
anticipated to show a gain.
Abbreviations Used in S&P Equity Research Reports
CAGR- Compound Annual Growth Rate; CAPEX- Capital
Expenditures; CY- Calendar Year; DCF- Discounted Cash
Flow; EBIT- Earnings Before Interest and Taxes; EBITDAEarnings Before Interest, Taxes, Depreciation and
Amortization; EPS- Earnings Per Share; EV- Enterprise
Value; FCF- Free Cash Flow; FFO- Funds From Operations;
FY- Fiscal Year; P/E- Price/Earnings ; PEG RatioP/E-to-Growth Ratio; PV- Present Value; R&D- Research
& Development; ROE- Return on Equity; ROI- Return on
Investment; ROIC- Return on Invested Capital; ROAReturn on Assets; SG&A- Selling, General &
Administrative Expenses; WACC- Weighted Average
Cost of Capital
expected to underperform the total return of a relevant
benchmark by a wide margin over the coming 12 months,
with shares falling in price on an absolute basis.
Dividends on American Depository Receipts (ADRs) and
American Depository Shares (ADSs) are net of taxes
(paid in the country of origin).
Required Disclosures
In contrast to the qualitative STARS recommendations
covered in this report, which are determined and
assigned by S&P equity analysts, S&P’s quantitative
evaluations are derived from S&P’s proprietary Fair
Value quantitative model. In particular, the Fair Value
Ranking methodology is a relative ranking methodology,
whereas the STARS methodology is not. Because the
Fair Value model and the STARS methodology reflect
different criteria, assumptions and analytical methods,
quantitative evaluations may at times differ from (or even
contradict) an equity analyst’s STARS recommendations.
As a quantitative model, Fair Value relies on history and
consensus estimates and does not introduce an element
of subjectivity as can be the case with equity analysts in
assigning STARS recommendations.
S&P Global STARS Distribution
★★★★★1-STARS (Strong Sell): Total return is
Relevant benchmarks: In North America the relevant
benchmark is the S&P 500 Index, in Europe and in Asia,
the relevant benchmarks are generally the S&P Europe
350 Index and the S&P Asia 50 Index.
For All Regions: All of the views expressed in this
research report accurately reflect the research analyst's
personal views regarding any and all of the subject
securities or issuers. No part of analyst compensation
was, is, or will be directly or indirectly, related to the
specific recommendations or views expressed in this
research report.
S&P Global Quantitative Recommendations Distribution
In North America: As of December 31, 2012, Standard &
Poor's Quantitative Services North America
recommended 39.9% of issuers with buy
recommendations, 20.0% with hold recommendations
and 40.1% with sell recommendations.
In Europe: As of December 31, 2012, Standard & Poor's
Quantitative Services Europe recommended 38.2% of
issuers with buy recommendations, 23.6% with hold
recommendations and 38.2% with sell recommendations.
In Asia: As of December 31, 2012, Standard & Poor's
Quantitative Services Asia recommended 52.6% of
issuers with buy recommendations, 18.3% with hold
recommendations and 29.1% with sell recommendations.
Globally: As of December 31, 2012, Standard & Poor's
Quantitative Services globally recommended 45.1% of
issuers with buy recommendations, 20.2% with hold
recommendations and 34.7% with sell recommendations.
In North America: As of December 31, 2012, research
analysts at Standard & Poor's Equity Research Services
North America recommended 35.2% of issuers with buy
recommendations, 58.5% with hold recommendations
and 6.3% with sell recommendations.
Additional information is available upon request.
In Europe: As of December 31, 2012, research analysts at
Standard & Poor's Equity Research Services Europe
recommended 28.2% of issuers with buy
recommendations, 51.8% with hold recommendations
and 20.0% with sell recommendations.
This report has been prepared and issued by Standard &
Poor's and/or one of its affiliates. In the United States,
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United States, research reports are issued by Standard
& Poor's ("S&P"); in the United Kingdom by McGraw-Hill
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& Poor's Investment Advisory Services (HK) Limited,
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In Asia: As of December 31, 2012, research analysts at
Standard & Poor's Equity Research Services Asia
recommended 34.7% of issuers with buy
recommendations, 51.6% with hold recommendations
and 13.7% with sell recommendations.
Globally: As of December 31, 2012, research analysts at
Standard & Poor's Equity Research Services globally
recommended 34.0% of issuers with buy
recommendations, 56.8% with hold recommendations
and 9.2% with sell recommendations.
★★★★★ 5-STARS (Strong Buy): Total return is
expected to outperform the total return of a relevant
benchmark, by a wide margin over the coming 12
months, with shares rising in price on an absolute basis.
★★★★★ 4-STARS (Buy): Total return is expected to
outperform the total return of a relevant benchmark over
the coming 12 months, with shares rising in price on an
absolute basis.
★★★★★ 3-STARS (Hold): Total return is expected to
closely approximate the total return of a relevant
benchmark over the coming 12 months, with shares
generally rising in price on an absolute basis.
★★★★★ 2-STARS (Sell): Total return is expected to
Other Disclosures
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& Poor's.
Standard & Poor's or an affiliate may license certain
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issuers of securities, including exchange-traded
investments whose investment objective is to
substantially replicate the returns of a proprietary
Redistribution or reproduction is prohibited without written permission. Copyright © 2013 Standard & Poor's Financial Services LLC.
STANDARD & POOR'S, S&P, S&P 500, S&P Europe 350 and STARS are registered trademarks of Standard & Poor's Financial Services LLC.
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Stock Report | February 2, 2013 | NNM Symbol: DELL
Dell Inc
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person makes a commitment to purchase the investment
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U.S. STARS Cumulative Model Performance
Hypothetical Growth Due to Price Appreciation of $100
For the Period 12/31/1986 through 01/31/2013
S&P 500
5 STARS
4 STARS
3 STARS
2 STARS
1 STARS
not necessarily the norm and there is no assurance that
they can be sustained. Past model performance of
STARS is no guarantee of future performance.
For model performance calculation purposes, the
equities within each STARS category at December 31,
1986 were equally weighted. Thereafter, additions to the
composition of the equities in each STARS category are
made at the average value of the STARS category at the
preceding month end with no rebalancing. Deletions are
made at the closing price of the day that the deletion is
made. Performance was calculated from inception
through March 31, 2003 on a monthly basis. Thereafter,
performance is calculated daily. Equities in each STARS
category will change over time, and some or all of the
equities that received STARS rankings during the time
period shown may not have maintained their STARS
ranking during the entire period.
The model performance does not consider taxes and
brokerage commissions, nor does it reflect the deduction
of any advisory or other fees charged by advisors or
other parties that investors will incur when their
accounts are managed in accordance with the models.
The imposition of these fees and charges would cause
actual performance to be lower than the performance
shown. For example, if a model returned 10 percent on a
$100,000 investment for a 12-month period (or $10,000)
and an annual asset-based fee of 1.5 percent were
imposed at the end of the period (or $1,650), the net
return would be 8.35 percent (or $8,350) for the year.
Over 3 years, an annual 1.5% fee taken at year end with
an assumed 10% return per year would result in a
cumulative gross return of 33.1%, a total fee of $5,375
and a cumulative net return of 27.2% (or $27,200). Fees
deducted on a frequency other than annual would result
in a different cumulative net return in the preceding
example.
$2,400
$1,600
$800
$0
'92
'94
'96
'98
'00
'02
'04
'06
'08
'10
The performance above represents only the results of
Standard & Poor's model portfolios. Model performance
has inherent limitations. Standard & Poor's maintains the
models and calculates the model performance shown,
but does not manage actual assets. The U.S. STARS
model performance chart is only an illustration of
Standard & Poor's (S&P) research; it shows how U.S.
common stocks, ADRs (American Depositary Receipts)
and ADSs (American Depositary Shares), collectively
“equities”, that received particular STARS rankings
performed. STARS categories are models only; they are
not collective investment funds. The STARS performance
does not show how any actual portfolio has performed.
STARS model performance does not represent the
results of actual trading of investor assets. Thus, the
model performance shown does not reflect the impact
that material economic and market factors might have
had on decision-making if actual investor money had
been managed. Performance is calculated using a
time-weighted rate of return. While model performance
for some or all STARS categories performed better than
the S&P 500 for the period shown, the performance
during any shorter period may not have, and there is no
assurance that they will perform better than the S&P 500
in the future. STARS does not take into account any
particular investment objective, financial situation or
need and is not intended as an investment
recommendation or strategy. Investments based on the
STARS methodology may lose money. High returns are
Redistribution or reproduction is prohibited without written permission. Copyright © 2013 Standard & Poor's Financial Services LLC.
STANDARD & POOR'S, S&P, S&P 500, S&P Europe 350 and STARS are registered trademarks of Standard & Poor's Financial Services LLC.
The Standard & Poor's 500 index is the benchmark for
U.S. STARS. The S&P 500 index is calculated in U.S.
dollars and does not take into account the reinvestment
of dividends. Indexes are unmanaged, statistical
composites and their returns do not include payment of
any sales charges or fees an investor would pay to
purchase the securities they represent. Such costs
would lower performance. It is not possible to invest
directly in an index. The S&P 500 index includes a
different number of constituents and has different risk
characteristics than the STARS equities. Some of the
STARS equities may have been included in the S&P 500
index for some (but not necessarily all) of the period
covered in the chart, and some such equities may not
have been included at all. The S&P 500 excludes ADRs
and ADSs. The methodology for calculating the return of
the S&P 500 index differs from the methodology of
calculating the return for STARS. Past performance of
the S&P 500 index is no guarantee of future
performance.
An investment based upon the models should only be
made after consulting with a financial advisor and with
an understanding of the risks associated with any
investment in securities, including, but not limited to,
market risk, currency risk, political and credit risks, the
risk of economic recession and the risk that issuers of
securities or general stock market conditions may
worsen, over time. Foreign investing involves certain
risks, including currency fluctuations and controls,
restrictions on foreign investments, less governmental
supervision and regulation, less liquidity and the
potential for market volatility and political instability. As
with any investment, investment returns and principal
value will fluctuate, so that when redeemed, an
investor's shares may be worth more or less than their
original cost.
For residents of Australia – This report is distributed by
Standard & Poor’s Information Services (Australia) Pty
Ltd ("SPIS") in Australia. The entirety of this report is
approved by Peter Willson, who has reviewed and
authorised its content as at the date of publication.
Stock Report | February 2, 2013 | NNM Symbol: DELL
Dell Inc
Any express or implied opinion contained in this report is
limited to "General Advice" and based solely on
consideration of the investment merits of the financial
product(s) alone. The information in this report has not
been prepared for use by retail investors and has been
prepared without taking account of any particular
person's financial or investment objectives, financial
situation or needs. Before acting on any advice, any
person using the advice should consider its
appropriateness having regard to their own or their
clients' objectives, financial situation and needs. You
should obtain a Product Disclosure Statement relating to
the product and consider the statement before making
any decision or recommendation about whether to
acquire the product. Each opinion must be weighed
solely as one factor in any investment decision made by
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accordingly make their own assessment taking into
account an individual's particular circumstances.
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Number 258896. Please refer to the SPIS Financial
Services Guide for more information at
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Redistribution or reproduction is prohibited without written permission. Copyright © 2013 Standard & Poor's Financial Services LLC.
STANDARD & POOR'S, S&P, S&P 500, S&P Europe 350 and STARS are registered trademarks of Standard & Poor's Financial Services LLC.