NEW YORK, April 24 Hedge fund manager James
Chanos, president and founder of short-selling firm Kynikos
Associates, told CNBC on Wednesday that he was still betting
against the shares of computer-makers Dell and
Chanos, noted for predicting the downfall of Enron and more
recently a vocal bear on the Chinese economy, told CNBC that the
"PC (personal computer) business is falling apart" and the
industry faces structural problems.
"The real structural issue is these companies are behind the
eight-ball," Chanos said. "The secular story has not gone away."
Chanos has criticized Hewlett Packard for failing to keep up
with competitors in the mobile and cloud computing space.
The hedge fund manager said his roughly $6 billion firm had
gotten out of its Dell trade last year, then began to short the
stock again in 2013. If a hedge fund manager is short a stock,
he believes its price will fall.
"I shorted into the deal," Chanos said, referring to a $24.4
billion deal to take the company private for $13.65 a share.
"I'm puzzled as a financial analyst and a business analyst
why this is an attractive deal," he added, noting that Dell's
"cash flow is plummeting."
Chanos also said his New York-based firm has a small long
position in iPad maker Apple Inc, and added he had
never shorted that technology company.