No. 3 - The PC Trade

Thursday, 17 May 2007 | 12:55 PM ET

Dell (DELL) shares surged Wednesday even after New York Attorney General Andrew Cuomo sued the PC maker for deceptive practices. Meanwhile, Hewlett-Packard (HPQ) said after the bell that sales last quarter jumped 13% as it continued to steal share from Michael Dell and company. What's the better trade; bottom fish Dell or ride the HP mojo?

Jeff Macke says investors are seeing a little bit of the “PC revival trade” in Dell. In other words, a rising tide floats all boats. However, Jeff adds he still hates this company. He wouldn’t want to be short Dell, and likes being long HPQ.

The Top Three #3
Figuring out the PC trade after Dell's surprising up move after getting sued and HP's strong earnings after the bell

Guy Adami says he’s a Dell buyer hoping that Michael Dell can run the company better, now that he's at the helm again. Guy thinks Dell could be a $30 stock. (On Wednesday it closed at $25.92)

Tim Strazzini says the question is, “Can Michel Dell really make a change at the company level?” If he can implement cost savings and sales of notebooks go up as anticipated, Tim thinks Dell will benefit.

It will benefit HPQ more, adds Eric Bolling.

Would you buy shares of Dell? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap!

Prefer to keep it between us? You can still send questions and comments to fastmoney@cnbc.com.

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