Dell has crashed hard over the last few years, and with slowing PC growth this year, the trend doesn't appear to be slowing. The company's made-to-order model was very successful for its time and allowed Dell to run a lean inventory while they used their massive size to delay payments to suppliers and bring in money from sales at a faster clip. That window is narrowing, though, as Dell has lost clout and its days sales outstanding has grown 60% from a few years ago. That coupled with weaker sales means money is coming in slower -- and lighter -- than before.
While the company may resemble a great value play, its between a rock and a hard place.
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Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Oracle and has the following options: short JAN 2013 $150.00 calls on Salesforce.com and long JAN 2013 $150.00 puts on Salesforce.com. Motley Fool newsletter services recommend Salesforce.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.