"If you can get Dell

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[DELL  Loading...      ()   ] around $16.75, I think it’s interesting," says Fast Money pro trader Guy Adami. "The story looks like it remains in tact and the valuations remain compelling."

In extended trade Adami was getting ready to pull the trigger as other investors ran for the exits, after Dell disappointed the Street with weaker than expected earnings.

Looking at the numbers a little more closely, Dell posted a net income slide of 18 percent to $764 million, or 43 cents a share, for the period, down from $927 million, or 48 cents a share, a year earlier. Excluding one-time items, it earned 51 cents a share, a penny below the 52 cents expected.

Trader JJ Kinahan and Joe Terranova were also buyers.

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They say that although earnings appear troublesome on the surface, dig down and you'll find positive data points - that the story remains in tact.

For example,  Dell's large-enterprise business held up well, increasing sales 5 percent in the quarter to $4.9 billion, as corporations continued to upgrade aging hardware.

Also, Dell's gross margin rose to 21.1 percent from 20 percent a year earlier.

In addition the pros like Dell around $17 because the 50-day is around $16.25 - and they believe that technical level should generate support.

Of course there was plenty not to like in this report – and that’s what Fast trader Stephen Weiss was focused on.

Dell's public business generated revenue of $3.9 billion, which was down 1 percent from a year ago due to weakness in the United States and Western Europe while Dell's sales to consumers fell 2 percent over the same period.

“They’re citing Western Europe and federal government spending as drags and neither one of those issues are going away,” Weiss says.

If you’re looking for another idea, Joe Terranova suggests taking a look at all the cash Dell has on the balance sheet and how they might put it to work.

“They’re a serial acquirer,” he says. “Personally I think the could make their next move  in software – that’s where they have deficiencies."

Although it's purely speculative on his part, Terranova thinks Commvault

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[CVLT  Loading...      ()   ] and BMC

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[BMC  Loading...      ()   ] would compliment Dell's current business strategy.

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Current DateTime: 08:39:37 29 May 2012
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Current DateTime: 08:39:37 29 May 2012
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Trader disclosure: On Feb. 21, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Terranova is long VRTS; Terranova is long IBM; Terranova is long HPQ; Terranova is long MCD; Terranova is long EMC; Terranova is long OXY; Terranova is long SBUX; Terranova is long SWN; Terranova is long MSFT; Terranova is long YUM; Terranova is long TBT; Terranova is long FXE; Terranova is long LPX; Terranova is long LQD; Adami owns C; Adami owns GS; Adami owns MSFT; Adami owns AGU; Adami owns NUE; Adami owns INTC; Adami owns BTU; Kinahan is long BAC; Kinahan is long C; Kinahan is short WFC puts; Kinahan is short MS puts; Kinahan is long CSCO; Kinahan is short YHOO puts; Kinahan is long HD puts; Weiss is long MDRX; Weiss is long DMND; Weiss is long CHK; Weiss is long EUO; Weiss is long CSC; Weiss is long F; Weiss is long BKU; Weiss is long QCOM; Weiss is long NS; Weiss is long POT; Weiss is long SNDK; Weiss is long WLP; Weiss is long VZ; Weiss is long HK; Weiss is long HAIN; Weiss is long MDRX; Weiss is long MOS; Weiss is long POT; Weiss is long RIMM; Weiss is long WLP; Weiss is short MT;

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Please remember that past performance is no guarantee of future results. Any information regarding stocks specifically referenced in this presentation are the opinions of OSAM and OSAM’s employees and which may be owned by OSAM’s clients and/or by Mr. O’Shaughnessy in his personal investment accounts as well. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this presentation, will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for any portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this presentation serves as the receipt of, or as a substitute for, individualized investment advice from OSAM. OSAM is a Registered Investment Adviser with the SEC and a copy of our current written disclosure statement discussing our advisory services and fees remains available for your review upon request.

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