DELL: A Chance for Capital Appreciation?

I’d be very disinclined to buy Dell now. I’ve seen it ride up and down between 30 and 45 two or three times. I don’t see much opportunity for growth there, unfortunately in the short term. Though recently it’s been looking frothy again. Here’s another view:

Today’s Issue of Steve Sjuggerud’s DailyWealth

Why I’m Not Buying Dell by Porter StansberryThe stock is being accumulated right now by a “who’s who” list of the world’s best investors, including: Southeast Asset Management (advisors to the Longleaf Partners Fund), Dodge and Cox, and the Legg Mason Value Trust.

From a numbers perspective, Dell looks very attractive. It’s down $20 (roughly 50%) from its post-bubble high just above $40. It’s trading for less than 10 times operating earnings to enterprise value – suggesting that the stock is cheap enough for the company to buy all the shares back.

What are your top tips for 2007? I’m thinking about communications stocks, esp. the new AT&T and VZ. They have somewhat attractive EPS, and overall income and profit growth. They’ve been beaten up for a while. Can they stay down forever? I don’t think so. I like these stocks because
a. they’re in DJIA
b. they pay 4-4.5% dividends. Quite generous.
c. they’re out of favor right now.

I’ve also looked at DISney and Time Warner. Both of these are looking interesting. Time warner seems to be digesting and expurgating the stupid AOL acquisition, while DISney has changed leaders, mended fences and is now moving.

Anyone? Any comments?

These are pretty big fish, but for smaller mid-caps, any suggestions?

Just my 2c, etc. etc.