Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
Longleaf Partners Opposed To Dell Deal; Not Enough Per Share
Ted, on the flip side. Dell is an example of value-trap. Michael Dell has no interest to sell-off parts of the asset to transform itself as Hawkins suggested. Dell has tried and failed after spending sizable asset to build their service business, and has gone nowhere.
Hawkins is an excellent investor, but he apparently got into Dell above $20. "Many shareholders bought the company at lofty prices, watching the value of their shares erode. Analysts estimated that Southeastern paid more than $20 a share on average, meaning that the asset management firm would lose over $800 million if the current deal was completed." (http://dealbook.nytimes.com/2013/02/08/southeastern-asset-management-to-fight-dells-takeover/)
If O. Mason Hawkins thinks Dell is worth $24 per share he is in for a rude awakening. Zeke Ashton, the manager of TILDX (Tilson Dividend fund) is another investor who purchased a substantial stake in Dell at much loftier prices and rode it all the way down. Ashton, a devotee of Whitney Tilson's "deep value investing" style, fell for the Dell "value trap" and got caught with his "value pants" down.
Comments
I'd agree with Sven's "flip side" discussion.
http://www.nasdaq.com/article/t-rowe-price-to-vote-against-dell-buyout-20130212-01208#.URqh22cWk1I