Dell (Nasdaq: DELL) is hitting multi-year lows and, at 16 times trailing earnings, is attracting value investors that have coveted the stock from afar for years. Some of this latest decline can be traced to the company’s recent downward revision of earnings estimates. And this is precisely the noise that a contrarian investor looks to capitalize on.
But are Dell’s problems short-term in nature? Though the valuation appears alluring on the surface, I don’t yet own the stock. Here’s why.