Bloomberg reports:
Dell Inc. rose the most in five years in Nasdaq trading after profit and sales beat projections, signaling that Chief Executive Officer Michael Dell’s turnaround strategy is making progress.
The shares climbed as much as 9.8 percent after the second- largest personal-computer maker said sales advanced to $16.1 billion, exceeding the $15.7 billion average of analysts’ estimates compiled by Bloomberg.
Interestingly, however, the AP reported earlier this week:
A New York judge concluded Tuesday that the computer retailer Dell engaged in repeated false and deceptive advertising of its promotional credit financing and warranties.
Justice Joseph C. Teresi of State Supreme Court ordered Dell to disclose more clearly that most customers do not qualify for free financing or get “next day” repair service.
The New York attorney general, Andrew M. Cuomo, sued Dell last year.
“For too long at Dell the promise of customer service was a bait and switch that left thousands of people paying for essentially no service at all,” Mr. Cuomo said.
Amen.
Sources:
Dell Surges Most in Five Years on Turnaround Progress
Melita Marie Garza
Bloomberg
May 30, 2008
New York Judge Rules Against Dell in Suit Over Marketing
The Associated Press
May 28, 2008