Northern, WI  11/16/2012 (BasicsMedia)  —  When I started watching shares of Dell Computer in 1996 they were $2 p/s and were one of the  4 horseman hedge funds were looking at as part of the important move in Internet Stocks.  Shares went from $2 in 96 to $50 in 2000 and it was a fruitful ride for Dell and it’s shareholders.  But if you look at post 2000 for Dell you will see what happens when a shift in technology takes place, this chart, is more reflective of what happened to the desk top PC more than any I have ever seen.  Cell phones and tablets make the PC obsolete.  Period.

Shares fell in March 200 from $50 to $17 and have never really recovered.  I expect Dell will not end up like Digital Equipment (DEC) which has disappeared and gone out of business, but the brand DELL which adorns so many offices in the US and abroad can carry on in some way.  Michael Dell will need to partner with one of the new 4 horseman Google (NASDAQ:GOOG) or Amazon (NASDAQ:AMZN) who will require the co-branding of this hardware manufacturer…Dell will not make it unless it is acquired, and shares will need to fall further before they are a logical acquisition for a suitor and will become Digital Equipment and Michael Dell knows this.

Dell Inc. (NASDAQ:DELL) forecast a fourth straight quarter of declining sales as diminishing demand for personal computers overshadows the company’s efforts to diversify into more profitable products for data centers.  Fiscal fourth-quarter revenue will be $14 billion to $14.4 billion, the Round Rock, Texas-based company indicated in a statement yesterday. That’s less than the $14.5 billion average estimate of analysts, according to data compiled by Bloomberg. In last year’s fourth quarter, revenue was $16 billion.

It is difficult to write off a $14B revenue company, but the smoke and mirrors in strategy whereas they can switch revenue from the home PC to enterprise is just plain silly.  Many say they have “fundamental concerns” whether the company’s transition to enterprise can ramp up fast enough and successfully enough to offset pressures in PC-related businesses.

Dell, once the world’s top PC maker and a pioneer in computer supply chain management, is struggling to defend its market share against Asian rivals like Lenovo Group Ltd . Dell is trying to bolster growth by focusing on products and services to corporations.

In October, the company’s new enterprise business chief Marius Haas said Dell intends to push ahead aggressively to grab a bigger portion of the $110 billion market catering to the technology needs of corporations good luck Marius…you may as well change your symbol to DEC.

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