The gap between value and price for Dell has widened to an unusual extent.

What attracted us to Dell (DELL - $15.44) recently was the lift in its Fair Market Value to the mid- $20s, while its share price sank to a floor of around $14 in our proprietary TRAC™ work (Trapeze Ratio of Adjusted Capital.)  After stagnating for a few years, Dell is adding value again.

The company is somewhat misunderstood, as the struggling consumer PC business -- for which Dell is widely known -- now represents less than 5% of profits. Like IBM, H-P and others, Dell has morphed its business to address the enterprise market and IT services. Michael Dell has taken over the reins again and insiders have been buying.