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Dell Worth ‘A Higher Number’: Nygren

Wednesday, 16 Jan 2013 | 1:09 PM ET
Stocks Are Cheap: Portfolio Manager
Bill Nygren, Oakmark Select fund, says stocks remain historically cheap -- particularly financials, industrials and technology.

Investors are missing strengths in Dell, and the company is more valuable than its stock suggests, Oakmark Fund's Bill Nygren said Wednesday on CNBC.

"Investors have thought of this company as primarily a declining PC business, when in reality, more than half their earnings are coming from services, security, servers and areas away from PCs, more than half the income, and that area is growing nicely," he said on "Fast Money."

Amid talk that Dell could be acquired, Nygren pointed to its strong liquidity position and said that an open bidding process could see the company hit a higher price.

"Our expectation is that the board would have to consider not only any offers from a management group but make it an open process to outside bidders, and also consider possible restructuring steps as a public company," he said. "Our belief is that would lead to a higher number than where the stock is today."

Nygren also acknowledged that Dell, his top teck pick, underperformed last year.

"We did well last year despite our Dell position rather than because of it," he added.

Trader disclosure: On Jan. 16, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Josh Brown is long AAPL; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long TLT; Josh Brown is long XLF; Josh Brown is long WMT; Josh Brown is long TGT; Josh Brown is long SBUX; Pete Najarian is long AAPL; Pete Najarian is long BAC; Pete Najarian is long GS; Pete Najarian is long MS CALLS; Pete Najarian is long XLF CALLS; Pete Najarian is long RIMM; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Enis Taner is long GS; Enis Taner is long WFC CALL SPREAD; Enis Taner is long FB PUT FLY; Enis Taner is long YHOO; Enis Taner is long SPY PUTS; Mike Murphy is long AAPL; Mike Murphy is long C; Mike Murphy is long GS; Mike Murphy is long TGT; Mike Murphy is long FB; Mike Murphy is long EBAY.

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