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back to article Going public again would swell profits by two-thirds, claims Dell

Dell is wooing investors with the promise of profits leaping by more than two-thirds if they back Big Mickey D's plans to take the eponymous tech group public again. According to Dell's latest S-4 filing with the American Securities and Exchange Commission, by 2023 Dell reckons it will be generating revenues between $91bn and …

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  1. deadlockvictim

    What would I do?

    What would I do? I'd shut it down and give the money back to the shareholders.

    4 2 Reply
  2. James 51
    Black Helicopters

    I know this is probably both cynical and inaccurate but earn a bunch of shares, go public, issue buy backs, take it private again, earn a bunch of shares, rinse and repeat.

    11 0 Reply
    1. Charlie Clark Silver badge
      Reply Icon

      It's not cynical and not wildly inaccurate. When Dell bought VMWare it used lots of financial engineering including the infamous tracking shares. Now that debt has become a bit more expensive and corporate tay rates are more favourable versus capital gains than they used to be, Dell wants to go back on the deal and pretend shares in the whole are more valuable than shares in the part, and presumably stiff any bondholders by turning their bonds into equity.

      And then they'll probably be some spin-offs and sell-offs with more juicy fees. This has Goldman written all over it.

      5 0 Reply
      1. Darth.0
        Reply Icon

        @ Charlie Clark

        This may be a bit pedantic but Dell didn't buy VMware, EMC did and Dell got it as a result of their EMC acquisition.

        0 0 Reply
  3. Anonymous Coward
    Anonymous Coward

    "My name is Randolph Stippler and I have the papers to prove it."

    "Yes and what lovely papers they are."

    2 0 Reply
  4. herman

    Pump and Dump on a Grand Scale

    Repeatedly ripping off the public in this way is legalized robbery.

    5 0 Reply
  5. Anonymous Coward
    Anonymous Coward

    No way Dell would be more profitable ... they're only winning any business right now because they are trashing their pricing. If they were answerable to share holders, they would find that more difficult and with their complete lack of innovation they would find it hard to win at all.

    0 1 Reply
    1. Anonymous Coward
      Reply Icon
      Anonymous Coward

      Blame Trump

      Pre-Tax reform the buyout bond interest was deductible. Post-Tax Reform, interest deductions are severely limited. Hence the EMC buyout economics are in the toilet.

      Dell needs to refinance the buyout to be profitable.

      0 0 Reply
  6. Dr Abner Mality

    What is Dell trying to hide?

    Way back in 2001, I worked for a company helmed by a former Bain consultant who advised Dell how to stop hemorrhaging money and increase stock share value. His solution worked and involved no restructuring, no change in operations or products. Curiously, it did not involve increased profit margins on products sold. He simply directed them to change the way they declared income while keeping within SEC regulations. In other words, it was an accounting trick, the idea being that a market higher valuation enabled the company to access more capital. It worked well enough to let Mickey D take the company private again. I guess they still haven't worked out those fundamental operations flaws.

    0 0 Reply

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