WSJ.com - Dell Net Jumps as Optimism Grows

Dell is forecasting a nice increase in computer sales. Prices are getting cheap enough to put a computer in every room in the house. It is almost hard to believe that the latest Dell catalogue offers a super fast, heavy duty small business machine for $299. The next unit up includes a 17 inch flat panel monitor. The total cost of this extra fast machine is $499. These machines are considerably improved over the $2,500 machines of a few years ago.

Dell is quickly building its new plant in Winston-Salem, NC. HP is getting its butt kicked! IBM has left the business. Indications are that Dell can compete head to head with the new Chinese owners while maintaining good margins. The company has a low price to sales ratio and is approaching the characteristics of a value stock. Buy Dell!