Dell (NASDAQ:DELL) Mulling Over to Go Private; May Mark Biggest LBO since 2007 – DELL, SGI, SMCI, AAPL

Dell Inc (NASDAQ:DELL) has been mulling over a leveraged buyout with private-equity firms TPG Capital and Silver Lake, as said by a person with knowledge about the issue.

Shares of third-biggest personal-computer maker plunged 48% over the previous 5 years, as investors have become frustrated with the Round Rock, Texas Company’s failure to adapt to an industry wide shift to mobile and cloud computing.

Founder Michael Dell and his sponsors will need to round up over $20 billion in debt and equity to pull off what would be the major leveraged buyout since 2007.

Shifting reader’s focus to broader market, let us consider market performance of other stocks that significantly affect same sector. Silicon Graphics International Corp (NASDAQ:SGI) rose +0.42% to settle at $11.82, Super Micro Computer, Inc. (NASDAQ:SMCI) moved up +2.07% to end at $10.35 while Apple Inc. (NASDAQ:AAPL) dropped -0.53% to finish at $500.00 on Friday.

Dell Inc. (NASDAQ:DELL) last session’s volume of 52.33 million shares was higher than its average volume of 29.83 million shares. The stock after opening at $12.85 hit high price of $12.98 and then closed at $12.84 by scoring +0.16%.

DELL generated revenue of $58.66 billion in the previous twelve months and earned $2.61 billion. The Company showed a positive 4.44% in the net profit margin as well as in its operating margin which remained at 5.53%. Company’s annual sales growth for the past five years was 1.57%.

The DELL’s past twelve months’ price to sales ratio was 0.38 and price to cash ratio remained 1.98. As far as the returns are concerned, DELL’s return on equity was recorded as 27.66% and return on investment increased 11.47% while its return on asset stayed at 5.96%.

The stock showed weekly upbeat performance of 18.01% which was maintained for the month at 22.52%. Likewise the positive performance for the quarter was recorded as 30.75% and for the year was -20.40% while the YTD performance remained at 26.63%.

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