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Cohan: Dell is Going Away

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    Peter Cohan of Peter S. Cohan & Associates argues Dell will eventually become obsolete.

  • Duration 3:23
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-- shares of Dell sliding for a second day now following disappointing earnings in the first quarter is then -- creating a buying opportunity York.

Should investors -- walk away let's find out Peter Cohen.

Peter -- says -- joins us Peter great to see you -- in your Forbes blog today you wrote a piece entitled no end in sight for Dell's lost decade.

Having said that -- -- case for all the troubles that lie ahead at how it's really just the stock business strategies just evaporated over the last and you see anything good going the company.

Not really I mean it's gotten all the wrong things going on right now.

It's in in the PC business -- 75% of their.

Our revenues which isn't a business is basically.

Going away tablets Smartphones the cloud are are the other way the future.

In the meantime.

It's being it's got competition from apple obviously doing all this innovation which they can't do.

And then at the low and they've got competitors like Lenovo group and Acer from China.

That are a low cost producer so -- is stuck in the middle.

And it can't get its costs below those that it's local those low cost producers and it can't innovate like apple so basically gone away.

OK so -- Smartphones and tablets big picture here going to make the PC business obsolete at some point soon.

-- yes not necessarily soon but it will make make it obsolete I mean corporate executives love the tablet.

And that's that's where things are going.

Okay asked for in Dallas -- and acquisitions lately but do you think it needs to do a different kind of deal.

What is best course of action from here.

Well I don't know that the closest thing I've seen two companies been able to succeed in a business technology business.

Without rapid growth is IBM and IBM has been focusing on acquiring companies in India big data analysis based.

That seems to be a pretty attractive area so if -- -- gonna do any deals I think that would be a pattern of Dell could execute on those mergers.

So what do you do if -- They're holding -- -- your shares especially these last couple days and -- have to stick with it for the long haul.

I say that -- March of 2000 it's easy to say that now -- -- -- after it's gone down 80%.

But the fact of the matter is it down Michael Dell is still there he's added a dozen years to figure out what to do he still hasn't figured it out I would just get out of and take my losses.

-- with the -- -- tough Peter if you're trying to.

Find any kind of positive.

Reasoning telling shares of Dell lit up some of the other competitors -- -- you tell -- CTC going out.

I mean is there anything else to be optimistic about.

I'm not was Dell I mean.

Dell is very heavily dependent on businesses and businesses are cutting back on their IT spending because there looking out what's going on in Europe and China slowdown and they're saying how can we meet our numbers while we -- numbers by cutting back on IT spending and if we have to do any.

More IT spending we can do it on the cloud that's a lot cheaper and the fact of the matter is that.

You know if you really want to take advantage of where the growth is you have to be in a company like Amazon which has a big cloud business.

Or you can be -- in -- company like GMC that says capturing that the cloud in the data storage opportunity.

Or apple obviously and it's still achieve stock given -- -- trading at a PE of fourteen are right a lot of good info from the Peter appreciate your time here now.

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