Events Calendar
In This Section
Stocks zigzag after rally as the dollar rises
Job openings remain close to record-lows
Fed officials warn weak recovery won't spur jobs
Work force evolves, falters since 1982
Web sites offer help in finding scholarships
Refinance before low rates rise again
Microsoft to upgrade portal to boost Bing
Most Read Stories
Suitcase causes bomb scare at Akron bus terminal
Akron City Council OKs higher speed on I-77
Chapel Hill isn't rolling right along
Motorcyclist killed, wife injured in Stark County crash
Man says he was punched, robbed by 3 people in parking lot
New eateries expand menu of options
Patrick McManamon: Here's what the Browns should try the rest of the season
Louisville athlete commits to play for Boston College
Family found dead in Ohio home
Blogs:
Pets:
It Takes All Kinds
The Heldenfiles:
Tuesday Notebook
Patrick McManamon:
An interesting thought from a reader
Akron Zips:
Akron vs. Mount Union — Liveblog
Tribe Matters:
Indians announce spring dates
Cleveland Browns:
Mangini doesn't name a quarterback
Kent State Sports:
Flashes interested in another Cincinnati player
Cleveland Cavaliers:
Shaq: It’s All About Winning Championships
Buckeye Blogging:
Buckeyes Roll 100-60 / Season Outlook
Varsity Letters:
Report: Walsh baseball player commits
All Da King's Men:
More On The Fort Hood Jihadist
Blog of Mass Destruction:
Simply Incapable of Telling The Truth
Akron Law Café:
Health Care Financing Reform: (63) Commonwealth Fund Report on Primary Care
See Jane Style:
Muffle Your Muffler
Car Chase:
Clock Tender- Extending the Life of Collector Car Clocks
Let's Talk Real Estate:
Rumors: Akron Starbucks Closing
Ohio Travels with Betty:
Jack is looking for a trip to Southern Ohio the week of November 16.
Sound Check:
Aeromsith looking for new singer as Steven Tyler contemplates solo career
HRLite House:
Personal Rant – Why People Do Not Live in Northeast Ohio
Akron Gamer:
Video: 'Modern Warfare 2' hits the streets
Chief executive buys $100 million in shares
By Dan Gallagher
MarketWatch
Published on Friday, Jul 04, 2008
SAN FRANCISCO: Dell Inc. reported that Michael Dell, the PC maker's founder and chief executive, has bought nearly $100 million in shares, which recently have begun to bounce back from a six-year low.
The stock had slipped by about 10 percent in recent weeks, but is up to $22.81 from a low of $18.13 on April 15.
Late Tuesday, Michael Dell filed papers with the Securities and Exchange Commission disclosing the purchase of about 4.5 million of the company's shares for $99.7 million. The shares were purchased between June 27 and July 1 at an average price of $22.14, according to the filing.
The transaction was the largest insider purchase on record at the company, according to data from Thomson Reuters. It also was the largest purchase ever for Dell himself, who last bought 2.9 million shares in April 2006 — when the stock was trading at a similar range.
''You can't read too much into these things. Dell has done some insider buying in the past,'' said Brent Bracelin of Pacific Crest, who has an outperform rating on the stock. ''But when you look at this business, the stock is bouncing off a six-year low, and they just had their highest quarterly earnings in the
last two and a half years. Dell is putting his own money into the business, and that's why the stock is up.''
As a company, Dell has been engaged in a large-scale turnaround effort after it began to lose market share to rivals; in addition, sales growth has slowed. It's undertaken layoffs, shaken up the executive ranks and is shifting away from the direct-build model that it has used since its inception.
Dell's most recent quarter showed some early signs that the turnaround is working. Earnings were up 4 percent from the previous year, beating Wall Street's projections. Product shipments grew 22 percent over the same period.
But the stock has been largely flat since the last report. Investors have worried that the slowing U.S. economy could pinch the sales of large tech firms as consumers and businesses tighten their belts.
Michael Dell already was the company's largest shareholder. His recent share purchase increased his overall stake by about 2 percent to 12.3 percent of outstanding Dell shares.
''He's already got a lot of skin in the game,'' according to Jason Noland of Robert W. Baird, who rates the shares as neutral. ''It's not going to change his wealth much, but this signals that he's a believer in the turnaround.''
SAN FRANCISCO: Dell Inc. reported that Michael Dell, the PC maker's founder and chief executive, has bought nearly $100 million in shares, which recently have begun to bounce back from a six-year low.
Get the full article here.
Comments
Click here to post your comments
