Here's why: Business could be turning. I don't think people realize how far along Dell is toward not just being a personal computer company. Dell a service company. It has a PC division, for certain, but it is losing share to Hewlett-Packard and Lenovo.
It has spent a fortune turning itself into a one-stop provider for companies in the United States and Europe, and it's a big government contractor pretty much around the world.
And we have a very motivated guy. Michael Dell is tired of being a whipping boy. He has a really good business that is in a cyclical trough and another business that is in a secular decline, but he has mastered both and can handle the latter while improving the former. Lots of cash, lots of cash flow. I think it can work.
I keep thinking about that moment when Goldman Sachs went from "sell" to "buy" in one day, pointing out that a takeover could be upon us. If we get one, it isn't going to happen this low. It will happen much higher.
In the interim, I don't think there is as much earning risk as people think--at least in the second half, when I believe the huge spend on enterprise services will indeed pay off.
Disclosures: Cramer's charitable trust has no positions in the stocks mentioned.
