Shareholder opposition grows as computer maker Dell Inc. (
) defends its planned leveraged buyout at $24.4 billion. In his
latest trade on March 5, 2013, major DELL stakeholder
, Chairman of Southeastern Asset Management, reduced his DELL
shares by -0.13% at the average price of $13.5 that day, as
reported in the latest 13D filings by
. Hawkins now owns 146,612,358 shares, about 8.4% of the company.
The stock price has changed by 0%.
See Dell's 10-year here
Coinciding with the reduction, Southeastern Asset Management
repeated its earlier charge that DELL had placed management's
interests above those of shareholders. The company criticized
Dell for allegedly refusing to comment on the proposed buyout or
provide investors with the results of certain segments from last
In February 2013, Dell's largest outside investor and long-term
holder Southeastern Asset Management had bought more shares while
opposing the deal, saying that the deal "grossly undervalued the
company." One of the largest stakeholders in Dell,
has been Chairman and Chief Executive Officer Southeastern Asset
Management since 1975. He and his partners manage the Longleaf
Partners Funds. With a quarter-over-quarter turnover of 8%,
Southeastern Asset Management portfolio has 44 stocks with a
total value of $22.22 billion. Mason Hawkins' portfolio top three
weightings are financial services for 29.3%, EFT, options,
preferred at 14.9%, and Basic Materials, 13.3%.
A firm believer in business appraisals, Mason Hawkins told
GuruFocus in a past interview, "At Southeastern Asset Management,
we are our largest client because of our collective personal
investments in the Longleaf Partners Funds. You see your boss in
the mirror each morning, and you're not trying to trick that
person. You want to be very conservative with your appraisals."
Explaining the value of Dell back in 2011, Mason Hawkins said,
"In PCs you are basically a reseller for Windows and Intel. With
storage, servers, and services, that is not the case. You have
much, much higher gross margins." Read the full article here
As a buy-and-hold type, Mason Hawkins invests in large positions
of individual stocks and holds them for a long time. Southeastern
has held Dell since 2005. The GuruFocus checkup on DELL shows
that its operating margin is expanding and DELL's stock dividend
yield (1.1%) is close a-year high, both good signs. The checkup
did reveal that DELL revenue growth has slowed over the last year
in the slowdown in overall PC sales. Over the past three years,
DELL issued $4.5 billion of new debt but overall, its debt level
Mason Hawkins' DELL Holding History:
With a market cap of $24.41 billion and a P/E of 9.5, Dell Inc.
offers a range of technology solutions, including servers and
networking products, storage products, services, software and
peripherals, mobility products and desktop PCs.
Dell's Annual Growth Rate over 10 Years:
DELL data by GuruFocus.com
Mason Hawkins Top Buys, Top Sells, Top Holdings:
Dell Inc., based in Round Rock, Texas, is actively soliciting
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