Dell's Not on Easy Street Yet

Though Wall Street greeted the news of Michael Dell's return enthusiastically, the company's founder has his work cut out for him

After Dell announced the Jan. 31 ouster of Chief Executive Kevin Rollins, the spin coming out of company headquarters in Round Rock, Tex., was loud, clear—and predictable. Despite the bad news—including the disclosure that Dell would miss expectations for the third time in four quarters—the important thing was that the company's iconic founder, Michael Dell, was returning to run the company as CEO. And Wall Street, desperate for a savior, gobbled it up. The stock rallied in extended trading immediately after the announcement and analysts raised ratings the following day.

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