Michael Dell has finally pulled the plug.
As Dell Inc. deals with a declining market share, a stock price down 20% in two years, an SEC investigation into the company’s accounting practices, missed quarterly financial targets, late filings and an increasingly competitive PC environment, Michael Dell fired his CEO last week and decided to take over the job himself… one more time.
After gaining the title of one of the fastest growing companies in the world and after becoming the biggest PC maker, Dell Inc. is now second in PC sales after, you guessed it, Hewlett-Packard.
Can Michael Dell do it? Can he turn around his own company like Steve Jobs reinvented Apple? Now, wearing both hats of Chairman and CEO of the company, Dell has his work cut out for him. It’s no longer the little company Michael Dell founded 23 years ago. It’s now in a very competitive and large industry with some very smart players. Dell is a very large company itself. And, in restructuring, the bigger companies are, the longer they take to turn around.
My prediction: Dell will eventually get back into bed with Intel (whom it fired as its lead chip supplier several months ago) and capitalize on Intel’s new, faster microprocessor to deliver the world’s fastest PCs. As an entrepreneur myself, I think Michael Dell has what it takes to turn his now huge company around.
In fact, Dell is likely the only “big” capitalization stock I like. Michael Dell could be offering us an investment opportunity right now. I guess you could call it Michael Dell’s profit opportunity for investors. While it might take some time, this turnaround could work out quite well for investors and for Michael Dell himself. Good luck, Michael.