A SmartMoney article published last week suggested that Dell (NASDAQ:DELL), a Motley Fool Stock Advisor recommendation, is a bore -- predictable and monotonous -- yet a well-oiled, profit-making machine. I agree with most of that claim; however, boring is my cup of tea. I like boring, and boring has been good to me. Give me a boring, steady growing mammoth like Intel (NASDAQ:INTC) or Microsoft (NASDAQ:MSFT), and I'm a happy camper. I'm sure the shareholders of Krispy Kreme, Merck (NYSE:MRK), and Delta (NYSE:DAL) would welcome consistent, predictable, and boring. And if you haven't noticed yet, I'm going for the Guinness Book of World Records for the most uses of "boring" in a single paragraph.
The article went on to tell a story of how Dell would report earnings that would meet or exceed the Street's expectations for this quarter. The mood of the article was pretty much "ho-hum, so what, not interested." It made me wonder what we all look for in a company. The answer may be different for some, but I think most would agree that we want our money working in a company that's producing superior products that are in strong demand. Is that boring? If so, sign me up. Buy the tickets, pack the bags, and put me on the train!
The story also suggested that we can thank Dell for junking up our landfills with "shards of glass and splinters of putty-colored plastic" and giving us "groundwater . with petroleum-based chemicals." I realize the writer was being sarcastic (or at least I hope she was), but I guess you could say I'm a glass-half-full kind of guy. I see a company that has profited from developing and mass-producing a fine product that people enjoy. Sure, there are unintended consequences as with anything else, but overall I think you get the best of both worlds with Dell -- a steady grower making a product that has largely helped society.
Dell reported earnings last Thursday, and as the article anticipated, Dell met the consensus estimate, although revenues were down slightly. The stock's down almost 8% since earnings were released, but while the article suggests that Dell's shares "have been dead money" year to date, the predictable, monotonous, well-oiled machine that is Dell has delivered a beefy 20% return over a trailing 12-month period. Not too bad for a bore.
To read more about Dell, see:
David Gardner is another Dell fan. He recommended it for Motley Fool Stock Advisor subscribers. Take a free trial to see what else is on the lineup.
Krispy Kreme is also a Stock Advisor recommendation, and Merck is an Income Investor recommendation.
Fool contributor M.D. Mitchell is down the street at the local junkyard looking for some good trash. He will read his email as soon as he removes the shards of glass from his sneakers. He owns none of the above companies.
