sE searched 

Dell, Enron & .Exxell





:++ ...  


sExxell knows how global crime, Trademark terror and ICTerror works!





dot-E/sE... :





 Photo source or description










 Dell logo            




 Dell EqualLogic













As Advertised 

E-Value Code











As Advertised 

E-Value Code 

      applications not registered since March 2000:    








                               The image “Ecannot be displayed, because it contains errors.







 E Value Example 




E-Value E-Value Code









D E l l R O N?

So among high-tech finance guys these days I guess there is some kind of parlor game going on about what exactly Dell did that the SEC is busting them over. Among the incredibly long list of excruciatingly boring items covered in my meeting with the number geeks this morning, this was one hot tidbit I actually paid attention to. Apparently sometime in 2004 or 2005 Dell started doing something funky when it comes to financing customer purchases, basically doing its own financing instead of relying on outside partners. And they set up some "off balance sheet" entities to absorb the receivables. That phrase in quote marks may ring a bell; it was at the heart of the allegations lodged against another once high-flying Texas company by the name of Enron. Heard of it? I thought so. Our guys swear that if you pore through Dell's SEC filings like
this one
you can see where the bodies are buried. It's all Greek to me. And I'm too busy working on the iPhone to frig around with SEC documents. But the guys in this meeting were going on and on about it. Well, time will tell. Of course Michael Dell will use his frigged up eye as an excuse. "Your Honor, I can't see straight." See how that one flies.


DELL's Enron time

I predicted that DELL will go down like Enron unless it goes AMD by the end of 2Q06. Now, it's 3Q06, DELL is not shipping AMD yet. There are reports saying DELL bought two million AMD CPUs, but you have to wait a few more days until September 2006 for the back to school season. DELL is very slow in saving its own life. This AMD move would mean DELL's Enron time may be slightly delayed. However, there is a 75% probability that an Enron scenario can't be avoided.

Look at Dell's results, shareholder equity is now only $3.1 billion, and the market cap is still $52 billion. A price/book of 17. Folks, this is a house of cards, it can crash to the ground any moment. The fair price of DELL stock should be less than $3, at a level close to Gateway's.

I told Michael Dell that he needed to act quick to save his company. I warned him that once a company like DELL crashes, Feds will knock on doors trying to find scapegoats to send to jail. Had Enron survived, Jeff Skilling would be enjoying his half billion. But Enron crashed, and Skilling is in jail. SEC is now probing DELL. You can bet when DELL crashes, a penny of mismatch in books will be evidence of criminal activity.... You sign the paper submitted to SEC with materially untrue stuff? That's securities fraud..


DELL dancing on the thin ice

DELL's balance sheet looks horrible.

The balance sheet is just like your bank account balance against your bills. It shows how much money you have and how much you owe. One of the very important items are those that are "current", basically, the amount of cash and the amount of bills that must be paid now. There is a measure called "current ratio", which is the "current assets" divided by "current liability", it's like your money in the bank divided by the total amount of bills. If this number is bigger than 1, you have more money than bills and you are safe. If this number is smaller, you have more bills than money and you are in trouble. If current ratio is one, then your money is the same as bills, and you are living on the fringe.

So, let's examine DELL's balance sheet:

Bills to pay: $14.37 billion

Cash: $6.34 billion
Short term investments: $2.71 billion
Net receivables: $4.44 billion

See the problem? Adding up the cash and cash equivalents, you get only $13.45 billion. Almost one billion short of paying the bills.

However, there is a mysterious $2.739 billion "other current assets", which keeps DELL away from insolvency.

If I were a DELL investor, I would be very interested in knowing what this $2.739 billion other current assets are.

You never know when it's the last straw to break the camel's back, like the case of Enron (Imagine what if Enron survived till today with energy so expensive and energy stocks going through the roof...)

I predicted that DELL will be the next Enron.


February 08, 2006

Google And Dell, I Smell CRAPWARE

Lots of talk about Google and Dell teaming up to add Google stuff onto new Dell PCs. Rumors and predictions abound at the moment including possibilities that this could be a Star Office suite and thus Google's entree into the desktop software suite battle. (Is there one?) Of course the recently debuted Google Pack will probably be a part of any such offering. As I recall, that didn't meet with great gushers of enthusiasm.

Is it just me, but does anyone other than me smell a new slew of CRAPWARE, bogging down new PCs? Michael Parekh seems to hint that way. He says that this might create another "horserace" for control of the desktop. He's probably right. That just means we'll all be struggling along behind the horses figuring out how to clean up the CRAPWARE that comes preinstalled.

UPDATE: Looks like I'm NOT the only one sniffing CRAPWARE.


Posted by Dwight at 07:04 AM | Comments (2)

September 09, 2007

Dell on the defensive

Michael Dell built his computer company in 1984 with his own two hands, literally, crafting custom PCs in his University of Texas dorm room. dell3According to this interesting New York Times piece by Steve Lohr, he's building it again. And it doesn't sound like an envious job.

Over the last few years, Dell, once the gold standard among PC makers, has simply overlooked major growth trends in personal computing. It missed significant shifts in notebook computer sales and the consumer market as a whole, lagged competitors in international sales, and lost the profit edge that it enjoyed from its superior procurement-and-supply network. Hewlett-Packard, having overcome its own woes, passed Dell last year as the largest seller of PCs worldwide.

Dell's ills also extend beyond the nuts-and-bolts of making and marketing PCs. After a yearlong internal investigation, Dell conceded last month that some managers had falsified quarterly results to meet sales targets from 2003 to 2006. The company expects to reduce earnings over those years by $50 million to $150 million, tiny sums compared with the billions of dollars in profits it earned during that same period. (Dell posted annual sales of about $57 billion last year.) Yet the accounting disclosures suggest a corporate culture in which at least some senior managers felt under such pressure that they doctored the numbers; the disclosures have prompted a Securities and Exchange Commission investigation.

"The company was too focused on the short term, and the balance of priorities was way too leaning toward things that deliver short-term results -- that was the major root cause," explains Mr. Dell, dressed for the Texas summer in a short-sleeved polo shirt and jeans.

Dell also fell prey to the classic cycle of growth, arrogance and decline that I outlined two years ago. Success and profits lead to a sense of invulnerability and, in the cutthroat personal technology business, no one lives forever.

Dell turned its business model into a religion, and was determine to stick to it, no matter what. The company ran afoul of a Darwinian truth: Evolve or die. According to the Times story, Michael Dell has shut down the direct-model tent revival and is evangelizing otherwise:

At internal meetings, he repeatedly emphasizes that the Dell model "is not a religion," according to staff members. Moreover, Mr. Dell -- who once ran a company famous for its laserlike devotion to next week rather than next year -- no longer champions short-term goals and fixes. "We're moving the needle in terms of getting focused on the right long-term issues," he says.

But re-engineering the Dell model will be a daunting challenge. "Dell continued to do the same old thing, when it was no longer working," observes David B. Yoffie, a professor at the Harvard Business School. "This is going to be about changing the way they do business at many levels."

"Dell can do it," Mr. Yoffie adds, "but it's going to take a lot more innovation on more fronts than the company has shown in the past."

To throw yet another analogy on the pile, Dell became a direct-model drunkard, and it wasn't until the company hit bottom that it decided to change. Michael Dell himself is providing the intervention.

Of course, the proof as to whether Dell is reformed will come from the experiences its customers have. From the enterprise to the buyers of its lowest-cost systems, Dell has to create delight or risk losing customers.

I am asked daily by people to recommend a PC. They want to know not just specs, but brands. When they ask about Dell these days, I have to say that I don't know if I can recommend them. I've heard too many tales in the last two years of defective computers and horrific tech support. Recently, I've heard only sporadic reports of delightful customer experiences, and occasionally still hear about nightmares.

So let me ask the readers of TechBlog who've bought a Dell in the last 12 months: What's it been like? Were you happy with your purchase? Did you have to use tech support, and if so, what was it like?

From your experience, is Dell making a comeback? After all, your experience is ultimately Dell's bottom line.


Page mailing to a friend temporary disabled