Dell: We’ve Got Record Cash, and We’re Sharing

Dell Inc, (NASDAQ:DELL) the world’s second-largest personal-computer maker, has allocated a further $5 billion towards its stock-buyback program. The company cited an upswing in its cash flow. Cash and investments at the firm touched a record $16.2 billion at the end of last quarter.

Brian Gladden, chief financial officer of the firm, said in a statement “Our efforts to streamline our operations and reduce costs have resulted in outstanding cash flow from operations, we have the flexibility to continue making opportunistic share repurchases.”

The company is trading up to $14.70 — up 2.23% — sporting a P/E ratio of about 8 which is much lower than its peers. The company also trades at a sales multiple of 0.4 which is significantly lower than its industry rivals. On the technical front shares trade well below their declining 200 day and 50 day moving average. The MACD is about to show a bearish crossover while RSI is pointing up at 46.

Dell has been struggling as the PC business transitions to mobile smartphones and tablets. Investors should keep an eye on core competitors such as Hewlett-Packard (NYSE:HPQ), Apple (NASDAQ:AAPL), Google (NASDAQ:GOOG), and Cisco (NASDAQ:CSCO). All of these companies are making major strategic moves to remain top players in the computing sector.

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