Dell Inc. (DELL-NASDAQ) announced today that MICHAEL DELL will assume the duties of Chief Executive Officer, effective immediately. Mr. Dell, who will retain his duties as Chairman of the Board, will replace Kevin Rollins.
This is not new news if you have read us in one of our ten CEO’s that needed to go, and media reports have also been pointing to Rollins needing to leave. It isn’t without bad news, because DELL also said that it expects its fourth quarter Fiscal Year 2007 results to be below the average of First Call estimates for both revenue and earnings per share.
The focus is going to be on Michael taking back control, and it will be on his vision. I don’t really care about the warning, I care that Michael Dell is back in charge. A warning is not good, but the focus should be that the company is back in the right man’s hands. That is why we said Michael Dell was one of the most entrenched positions on the street, and he’s just the right guy for the job.
If this one gets beaten up after they re-open it because of the guidance; then it should be just a better long-term opportunity after the dust settles. CNBC’s Maria Bartoromo just asked a guest how long Michael Dell would have to show he can turn it around, which is fairly ludicrous. I would bet money on a Michael Dell being the best man for the job any day of the week.
Jon C. Ogg
January 31, 2007
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