Tech Experts Weigh Dell Probe


Shares of Dell opened lower Friday after news that its internal audit found evidence of potential financial misconduct and accounting irregularities. Some have voiced concern that this investigation could focus on founder, chairman and CEO Michael Dell himself.

Roger Kay, president and founder of Endpoint Technologies, and Tom Gardner, CEO of The Motley Fool, joined "Morning Call" to debate the impact.

According to Kay, “Michael Dell will not be found criminally liable in the probe.” Rather, Kay believes that this accounting probe will be more of an annoyance for the CEO.

But Gardner said, “Dell’s competence and behavior will remain under question.” He believes that an accounting probe like this is “bad for a company like Dell.”

The firm will miss the deadline for filings its annual reports. Shares of Dell dropped 7% on the news, but recovered a bit midday as investors try to decide what their next move is -- and whether the company can turn itself around.