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Old 09-22-2011, 09:56 PM   #21
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Meg Whitman? Seriously?



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Old 09-23-2011, 08:36 AM   #22
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For those of you saying HP was just like any other large company, it wasn't while I worked there (94-05). But it has gone steadily downhill the last five years.

And Meg Whitman...really? Oh dear.

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Old 09-23-2011, 08:54 AM   #23
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For those of you saying HP was just like any other large company, it wasn't while I worked there (94-05). But it has gone steadily downhill the last five years.

And Meg Whitman...really? Oh dear.

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I think HP has been on the wrong track longer than that. They hit their peak in the late 90's with client server and a very competitive server offering bundled with Oracle. Then they embraced Intel chips and bought Compaq and spend a great deal of time and effort making that work while the rest of the industry continued to evolve. Now they are not key competitors in the major market or industry focus areas.

I saw some excellent analysis in the 90's that compared IT share of heart, share of mind and market cap. It showed pretty convincingly that market cap followed share of heart. Right now that is Apple and Google, and the social business are moving up. Based on this, HP stock, much like Microsoft, won't move above the rest of the industry until they refocus their brand strategy regain share of heart.
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Old 09-23-2011, 09:35 AM   #24
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This 'sled' will continue downhill until it reaches mid-teens. The good engineers are leaving and the BOD continues to squander huge $$$ on ceo pay, perks, and lawyers.
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Old 09-23-2011, 02:58 PM   #25
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For those of you saying HP was just like any other large company, it wasn't while I worked there (94-05). But it has gone steadily downhill the last five years.

And Meg Whitman...really? Oh dear.

2Cor521
Carly Fiorina remains the biggest problem HP ever had. HP just failed to right the ship after she took it off course.
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Old 09-23-2011, 09:13 PM   #26
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...and the BOD continues to squander huge $$$ on ceo pay, perks, and lawyers.
And $25,000,000 severance packages.
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Old 09-23-2011, 09:32 PM   #27
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This has got to be the most hated stock I have ever seen. Everything I watch and everything I read about it is negative to the max!

The forward P/E is 4.6 now!

I'm up to 280 shares and plan to buy more as soon as I get paid for the month. Look at the numbers and forget the stupidity of the higher ups. This company is so oversold its hilarious.

I personally hope they will spin off the PC business even if it turns out to not be the best option financially. They are never going to be allowed to move into higher margins with that boat anchor dragging them down.

The MSM loves the story of PCs as a dying industry. I bet it sells a lot of advertising for them. The MSM also seems to have a very hard time understanding the difference between revenues and profits. They see the number of $40 billion revenue for PCs and completely overlook that it only brings in $2 billion in profit.

The MSM and the public are absolutely convinced that HP is a PC company when it only brings in around 2 billion of the 11.5 billion of profits. That is only 17%...

Now lets look at the statements made by Dell that the PC business is the driver for all of the other sales... If this were true then why is it that both Cisco and IBM sell more blade servers than Dell? Neither of them is stuck with a crappy PC business (low margins and tied to the walmart shopper economy).

Cisco entered the x86 blade server market in 2009... and they now have 9.4 percent of the market and Dell has 8.4 percent! IBM has around 20% and HP has around 50%.

If PCs create such a great synergy for up-selling servers then why did Cisco go from 0% in 2009 to beating Dell in 2011? lol
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Old 09-24-2011, 12:11 AM   #28
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This has got to be the most hated stock I have ever seen. Everything I watch and everything I read about it is negative to the max!

The forward P/E is 4.6 now!

I'm up to 280 shares and plan to buy more as soon as I get paid for the month. Look at the numbers and forget the stupidity of the higher ups. This company is so oversold its hilarious.

Ok, at this price I have say it is looking a bit more interesting. I think my strategy will be to write a put at say $20/share. The Jan are ~1.70 but it is also tempting to take advantage of the volatility and write the Jan 2013 (16 month) which are selling for $3.80. The company has roughly $6/share in cash which means that that if the options get exercised I'll be buying the companies business for roughly $10/share. Although the HP Board is clearly capable of remarkable destruction of shareholder value and I wouldn't be at all amazed if HP's profits drop from $4/share to $1-$2 share during the CEO of the quarter circus. At $16.20 it will have a 3% yield and all have the satisfaction of owning a formerly great company at 1/3 price of just a few years ago.
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Old 09-24-2011, 10:01 AM   #29
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Ok, at this price I have say it is looking a bit more interesting. I think my strategy will be to write a put at say $20/share. The Jan are ~1.70 but it is also tempting to take advantage of the volatility and write the Jan 2013 (16 month) which are selling for $3.80. The company has roughly $6/share in cash which means that that if the options get exercised I'll be buying the companies business for roughly $10/share.
But don't they also have ~ $12/share of debt, so isn't that like negative $6 cash?

HPQ Key Statistics | Hewlett-Packard Company Common Stock - Yahoo! Finance

I recall a time when people were trying to figure the value of Apple (AAPL) adjusted for its then large (but not staggeringly large like today) cash holdings (and zero debt). But back then, they could get 4-5% on their cash, so you had to back the interest out of their income. It got interesting. IIRC, they were making more in interest for a time than they were from operations.

At any rate, this thread has motivated me and I sold a few SEPT $23 strike puts, and now sold $22 strike puts for OCT. Got a bit over $0.90 for each. I'm kind of ambivalent as to whether I get assigned or not, but I'll keep playing as long as the premiums are this high. I like to play the near month though - the premiums are relatively higher, and my crystal ball only has to look a month out.

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Old 09-24-2011, 03:00 PM   #30
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Another fine, family-run company that hired a succession of empty suits after the founders retired/passed away. The current guy at HP started this year saying how he was going to go after Apple in the consumer space and then within six months, it's all about corporate services. In other words, he doesn't have a clue and he's playing catch-up, but he can afford to because his salary and bonuses are nicely backed up by the cash cow which is their printer business.
I should have shorted Leo Apotheker when I wrote that.
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Old 09-24-2011, 03:58 PM   #31
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But don't they also have ~ $12/share of debt, so isn't that like negative $6 cash?

HPQ Key Statistics | Hewlett-Packard Company Common Stock - Yahoo! Finance

I recall a time when people were trying to figure the value of Apple (AAPL) adjusted for its then large (but not staggeringly large like today) cash holdings (and zero debt). But back then, they could get 4-5% on their cash, so you had to back the interest out of their income. It got interesting. IIRC, they were making more in interest for a time than they were from operations.

At any rate, this thread has motivated me and I sold a few SEPT $23 strike puts, and now sold $22 strike puts for OCT. Got a bit over $0.90 for each. I'm kind of ambivalent as to whether I get assigned or not, but I'll keep playing as long as the premiums are this high. I like to play the near month though - the premiums are relatively higher, and my crystal ball only has to look a month out.

-ERD50
Ah you are right, the old HP had minimal debt so I didn't even occur to me to look for it. -$6 in cash makes it look less interesting as long term holding. I generally like to write puts for stocks that I am happy holding at the exercise price. At $20+ dollars I am not as thrilled owning HP in the long term, much less the short term. The short term premium is huge. Those premiums are crazy high because of the huge uncertainty of both the market and the company. I'm going to have to put my thinking cap on.
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Old 09-25-2011, 12:49 AM   #32
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Those premiums are crazy high because of the huge uncertainty of both the market and the company. I'm going to have to put my thinking cap on.
I've been applying the same logic to selling Berkshire Hathaway puts. We'll have to talk more about this!
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Old 09-25-2011, 10:50 AM   #33
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This has got to be the most hated stock I have ever seen. Everything I watch and everything I read about it is negative to the max!

The forward P/E is 4.6 now!

I'm up to 280 shares and plan to buy more as soon as I get paid for the month. Look at the numbers and forget the stupidity of the higher ups. This company is so oversold its hilarious.
I think similar logic applied to Nokia, yet the stupidity of the higher higher ups couldn't be forgotten, and it's continued to fall...
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Old 09-25-2011, 07:31 PM   #34
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Sometimes, a picture is worth lots of words... (peak $39.90 10/26/2007)
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Old 10-03-2011, 03:58 PM   #35
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I'm a sucker sharp-eyed investor, and when I saw HP take a 20% hit, its go time. I bought at about 24 then got cold feet strategically sold shortly thereafter at around 26.
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Old 11-08-2011, 04:18 PM   #36
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So, HP ended up keeping the PC business after all. Probably a good idea. Now I guess figuring out what to do with WebOS is next.

All told I bought 300 shares at a cost of $7,384.60. So an average cost of $24.62 per share. I'm up about $1,000 so far. I think it is possible I could end up about doubling my money within the next five years and I'll make 2% per year in dividends while I wait.



I'm back to putting money into VGK the Vanguard European Index ETF for the rest of the year. I have put in about $95k and would like to get that to $100k. My div yield based on many years of past data will probably be around 4.5%.

After that I'll start looking at individual stocks again. Probably something in the financial sector. Maybe BlackRock BLK.
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Old 05-13-2012, 01:32 AM   #37
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Anyone considering owning HP stock might read this article:

How Hewlett-Packard lost its way - Fortune Tech

called
How Hewlett-Packard lost its way

May 8, 2012: 5:00 AM ET Léo Apotheker's disastrous tenure as HP's CEO revealed a dysfunctional company struggling for direction after a decade of missteps and scandals. Can his replacement, Meg Whitman, fix the tech giant?

By James Bandler with Doris Burke
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Old 05-13-2012, 08:26 AM   #38
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I do not like tech stocks. Never have. Now if something like cold fusion comes up, I might consider but until then, it is oil for me.
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Old 05-15-2012, 01:42 AM   #39
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Anyone considering owning HP stock might read this article:

How Hewlett-Packard lost its way - Fortune Tech

called
How Hewlett-Packard lost its way

May 8, 2012: 5:00 AM ET Léo Apotheker's disastrous tenure as HP's CEO revealed a dysfunctional company struggling for direction after a decade of missteps and scandals. Can his replacement, Meg Whitman, fix the tech giant?

By James Bandler with Doris Burke

Wow just wow. A 1/2 dozen scandals ago, a SV journalist had a headline that read "The HP boardroom is powered entirely by Bill and Dave spinning in their graves". I am pretty sure the entire Silicon Valley can be powered by their spinning now.

What ever my complaints about the CEO that followed Andy Grove at Intel they pale in comparison.
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Old 05-21-2012, 03:54 PM   #40
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So, I have 620 shares of HPQ now and plan to have 1,000 shares by the end of the year. I feel quite good about the investment and think the shares are cheap. They could always go lower of course.

I did get VGK, the vanguard europe etf, up to $100k principal invested. So, I have been working on other things like HPQ, JNJ, and PG. I want to get HPQ to 1,000 shares and then do likewise for JNJ. That's the plan for this year.

If I can remember to do so I'll check in again every year and post how it is going.

The recent layoff rumor which, I'm sure will be confirmed this wednesday, will probably be long term beneficial. I never like reading about layoffs, but it is what it is. The rumors that I have seen are that the money free'd up from the layoffs will go towards improving sales, via the channel, and investments in R&D.

I think there are a lot of promising opportunities for R&D in particular with: hpcloud.com, autonomy.com, and vertica.com.
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