Tech and Web NEWS

Michael Dells- a Tricky CEO trying to impress his investors?

By Amarendra Bhushan for CEOWORLD Magazine Updated:September 9, 2008

Michael Dell Founder and CEO of DELL Inc has bought about 4,878,000 shares worth about $100 million of his company’s stock in two transactions last week, following a drop in the computer firm’s shares after it reported disappointing results. The new purchases brings Michael Dell’s stake to just over 255 million shares.

Shares of Dell fell 14% on August 29th after reporting disappointing Q2 results, due to lower gross margin. Dell also warned that conservatism in IT spending is spreading to Western Europe and Asia. The earnings report was a blow to Dell investors, who thought the company had finally turned a corner in their turnaround.

Who is Michael Dell?

Michael Dell, born in February 1965, is the chairman of the Board of Directors and chief executive officer of Dell, the company he founded in 1984 with $1,000 and an unprecedented idea – to build relationships directly with customers. In 1992, Mr. Dell became the youngest CEO ever to earn a ranking on the Fortune 500.

Mr. Dell is the author of Direct From Dell: Strategies That Revolutionized an Industry, his story of the rise of the company and the strategies he has refined that apply to all businesses.

In 1998, Mr. Dell formed MSD Capital, and in 1999, he and his wife formed the Michael & Susan Dell Foundation, to manage the investments and philanthropic efforts, respectively, of the Dell family.

Mr. Dell serves on the Foundation Board of the World Economic Forum, the executive committee of the International Business Council and is a member of the U.S. Business Council. Mr. Dell also serves on the U.S. President’s Council of Advisors on Science and Technology, the Technology CEO Council and the governing board of the Indian School of Business in Hyderabad, India.

Questions can be raised like; if Michael Dell is trying to sell his company isn’t this illegal. Is he trying to force stock prices up?

As I see, Dell would start PC price wars just to gain market share and punish its competitors. Sure, profit margins would suffer a little, but Dell’s proficient manufacturing operation ensured it could still make money while rivals bled.

Something is up…

Like this article! ‹ Elekta – ELEKTA’S ANNUAL REPORT 2007/08 What goes UP must come DOWN ! But is that “always” true … ›
Share this Post: Get It Delivered To Your Inbox