ShinesRooms' Review on Apple and Dell: Tech Stocks Offer Value to Investors

The ShinesRooms.com Provides Stock Research on Apple Inc. and Dell Inc.

NEW YORK, NY--(Marketwire - Feb 8, 2013) - Technology sector is known for its fast changing dynamics. Rise of Apple Inc. along with its smartphone and tablet saw the fortunes of PC companies declining. In a short time span, major companies like HP and Dell Inc. saw deep decline in their revenue and profits. For Dell, the entire situation culminated with the company going private. However, after a period of seeing its stock price skyrocketing, Apple too seems to fallen prey of tech quirks. The stock is in deep bearish phase and lost 20 percent of its value in past three months.

Access our free reports on Apple Inc. (NASDAQ: AAPL) and Dell Inc. (NASDAQ: DELL). Traders can also connect to our Wall Street Trading Floor where our research desk and market pros are standing between 8:50 am to 4:15 pm ET at

http://www.ShinesRooms.com/AAPL020813.pdf
http://www.ShinesRooms.com/DELL020813.pdf

Dell Inc. is finally going private, putting an end to a round of speculations. In $24.4 billion deal, the company is now being bought by its founder Michael Dell with the aid of Private Equity firm Silver Lake and Microsoft. Though the rumors about the company going private had been swirling around from quite some time, the final purchase price has come as a bit of shock for its shareholders.

The deal effectively priced the stock at $13.65 and the stockholders will get pretty much no premium out of this transaction. For this deal, Michael Dell utilized $2 billion from Microsoft. The deal also involves financing from the institutional investors to the tune of $15 billion. With approximately $2 billion in annual net income, the company is being valued at the multiple of 12. However, the deal will relieve Dell from the pressure of delivering impeccable quarterly returns and will enable the company to take bolder steps with far-reaching impact.

Apple Inc. has a long tumultuous track record. Lately, the stock seems to have lost its sheen, but the company fundamentals are still intact. So, contrary to the popular view, current pullback in the price offers a good entry point. While, the demise of Steve Jobs took away the glamour quotient of the company, under the stewardship of Tim Cook, the company is still pursuing its established path.

The stock is considerably down from its highs, but at the very same time, the company still has its rock solid balance sheet with $137 billion worth of cash pile. Its recent results may point to slowdown in the growth of the company but Apple is expected to pump up the momentum with the introduction of new products. Apple is expected to keep its revenue growth rate in double digits. The stock is currently trading at forward P/E ratio of 9.20 and thus is available at bargain price.

On the positive side, the company is still in a unique position as its main competitor Microsoft failed, yet again, to bring about any disruption in the market with its Windows 8 and Surface tablets. Its iPhone is still likely to rule the market as BlackBerry's new BB10 offerings yet have to gain any traction in the market. Overall, Apple may be going through a slump period and performing rather badly, but thanks to its competitors' even worse performance, the company is still headed to rule the market. At the very same time, investors will do themselves good to realize that Apple is reaching mature company status and may not keep providing astronomically high rate of growth.

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