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Old 05-27-2012, 10:20 AM   #41
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Cheap is only good if you're buying something of value.

What parts of HPQ's business do you like from an investment standpoint?

What parts of HPQ's business do you think will make more money in the future?

The only business they seem to have a leadership role in is printing, which is a shrinking business.



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Originally Posted by ESRwannabe View Post
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.
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Old 05-27-2012, 10:38 AM   #42
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HP is not just a printer or PC company any longer. A significant chunk of revenue now comes from IT services (read outsourcing) via the Electronic Data Systems acquisition. Be sure you understand performance of the Enterprise Services part of the business when making your investing decision.
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Old 05-28-2012, 10:00 AM   #43
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I consider them an "also-ran" in that business.

IBM is really the leader of that business.

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HP is not just a printer or PC company any longer. A significant chunk of revenue now comes from IT services (read outsourcing) via the Electronic Data Systems acquisition. Be sure you understand performance of the Enterprise Services part of the business when making your investing decision.
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The trend continues...
Old 07-06-2012, 06:35 PM   #44
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The trend continues...

IBM vs. NOK, HPQ and RIMM
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Old 10-03-2012, 10:58 PM   #45
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The trend continues...
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Old 10-04-2012, 12:24 PM   #46
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This is a dead company that just hasn't stopped moving yet. Thats what happens when you have a series of ceo's who destroy the culture and ruin the business.
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Old 10-07-2012, 09:16 PM   #47
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You guys aren't very patient are you?

I got HPQ up to 1,000 shares as planned. My average cost basis is around $21.

Let's see what happens in five years.

I'm now working on JNJ, PG, and JPM. Getting them all to 200 shares each. So far I have 160 shares of JNJ and PG, and 90 of JPM.
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Old 10-07-2012, 09:47 PM   #48
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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
Thanks swifter, that was a fascinating read. Depressing too!

HP ceased being "HP" when they spun off Agilent. Agilent should have kept the HP name (since they were the true heirs of Bill and Dave in their garage startup), and they should have used the fancy high-dollar name for the resulting computer company. Completely different business than what Bill and Dave started.
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Old 10-08-2012, 12:41 AM   #49
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I have never worked at or with the old HP, but have used a lot of their lab equipment (who hasn't?), and have utmost respect for their designers. So, it broke my heart to see Agilent being spun-off, but as it turned out, that might be better for Agilent engineers. I have not followed Agilent, but just checked its stock price as an indication of its finance. A is doing a lot better than HPQ.

And by the way, I thought Carly Fiorina was the initiator of the split, but learned that it was Lew Platt who started it. I could be too sentimental, but felt sad that so many well-known engineering and aerospace corps with a proud tradition have disappeared over the years, or have shrunken to a pitiful fraction of their old selves.
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Old 10-08-2012, 06:14 AM   #50
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I know it is time to retire when the world has turned upside down from when I was in college.

Back then, every engineer wanted to work at HP, IBM or Motorola. The risk takers were thinking Apple or Microsoft in the "cool" home computer area. The visionaries were looking way beyond that into companies we never heard of like Sun or Dell.

My, my what has happened since? HP and Mot have nearly died, or at least have had chunks spun off. IBM -- to their credit -- has become a different company. A painful process, for those who worked there, for sure, but they are alive and well.

MSFT and DELL exploded, and then leveled off or crashed since. Sun exploded, leveled, crashed and was bought by Oracle. Apple? You know their story. Wow, wow, wow.

My take on all this? I w*rk in technology, but I have found that has made me an absolute lousy stock picker in tech. I also have zero insight into the tech sector in general. Being in it clouds my vision more than anything.

Therefore, I've completely stopped picking tech stocks and don't participate. The few individual stocks I play with are outside of tech, and I've done much better with those than I ever did with tech.

HP is a great example of this. They had everything going for them, like IBM, and you'd think they were bulletproof. Now they are competing against IBM, who is way ahead. Personally, I would stay away. I don't like what I'm seeing. But again, I have zero luck with knowing tech companies.
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Old 10-08-2012, 08:27 AM   #51
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Well, if you extrapolate their recent history, I would expect a couple of CEO changes in that time, along with a couple of restructurings that write off the bulk of their "profits" over that time period.

The printer business will be smaller, the computer business will still be a marginal business (at best), and their services division will still be considered sub-par by everyone in the industry.

I suspect that in five years there will be concerns that HPQ might not have the cash flows to deal with their debt load.

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Originally Posted by ESRwannabe View Post
You guys aren't very patient are you?

I got HPQ up to 1,000 shares as planned. My average cost basis is around $21.

Let's see what happens in five years.

I'm now working on JNJ, PG, and JPM. Getting them all to 200 shares each. So far I have 160 shares of JNJ and PG, and 90 of JPM.
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Old 10-08-2012, 09:49 AM   #52
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I have several HP products and they are all very good. The quality is high, they are well designed and thought out, and they work as they were designed to do. I hope the company makes it.
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Old 10-08-2012, 11:04 AM   #53
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Who else remembers when HP stood for High Price? HP was dominant in specialized, quality equipment for business and scientific use. Those electronics sold at a higher margin than the consumer equipment HP got into in the 1980s. Love my HP stuff: my 20+ year old LaserJet is still going. My new HP flat screen monitor has fantastically uniform brightness and color. I'll pay extra for quality, but I don't know if the average consumer will.
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Old 10-10-2012, 07:52 PM   #54
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Have a small position in HP. Not enough to worry about, wish I hadn't bought it, but I'm willing to let it ride and see what happens.
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Old 10-11-2012, 09:42 PM   #55
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Quote:
Originally Posted by ESRwannabe View Post
You guys aren't very patient are you?

I got HPQ up to 1,000 shares as planned. My average cost basis is around $21.

Let's see what happens in five years.

I'm now working on JNJ, PG, and JPM. Getting them all to 200 shares each. So far I have 160 shares of JNJ and PG, and 90 of JPM.
Well, after having worked for HP for nearly 24 years from 1981 - 2005, I can't quite agree that I wasn't very patient. I hung in there far too long. However, having moved on to a new and more exciting company in aerospace, I can tell you that HP has lost many really good people through 2005 when I left. I also maintained contact with many who have just in the last few months accepted an offer for early retirement that Meg Whitman provided them. Most of these people were given 14 months of severance. How many of you wouldn't jump at the chance of accepting a 14 month severance package? I suppose if you have already ER'ed, this would not be relevant.

Anyway, needless to say, it is the stronger employees that immediately jump on such an offer, as about 10 - 20 of my former colleagues did in in the last two months. This does not bode well for the company. Most likely, Meg paid too much for these severance packages as this company has declined already to the point that the value of this sizable of a severance package is lost upon the stock holders.

My recommendation is still to sell what you have of "HPQ" and look to other companies for your retirement portfolio. Incidentally, the stock ticker of "HPQ" came from Carly after she was so proud of her merger with Compaq that she actually had to change the HP stock ticker. It used to simply be "HP".
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Old 10-12-2012, 11:55 AM   #56
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Well, after having worked for HP for nearly 24 years from 1981 - 2005, I can't quite agree that I wasn't very patient. I hung in there far too long. However, having moved on to a new and more exciting company in aerospace, I can tell you that HP has lost many really good people through 2005 when I left. I also maintained contact with many who have just in the last few months accepted an offer for early retirement that Meg Whitman provided them. Most of these people were given 14 months of severance. How many of you wouldn't jump at the chance of accepting a 14 month severance package? I suppose if you have already ER'ed, this would not be relevant.

Anyway, needless to say, it is the stronger employees that immediately jump on such an offer, as about 10 - 20 of my former colleagues did in in the last two months. This does not bode well for the company. Most likely, Meg paid too much for these severance packages as this company has declined already to the point that the value of this sizable of a severance package is lost upon the stock holders.

My recommendation is still to sell what you have of "HPQ" and look to other companies for your retirement portfolio. Incidentally, the stock ticker of "HPQ" came from Carly after she was so proud of her merger with Compaq that she actually had to change the HP stock ticker. It used to simply be "HP".
I walked away for a years pay + benefits. Your observation of how things flow is very accurate. When you crush a company's culture like Fiorina did, a lot of good people leave. When you subsequently offer fat severance packages, more good people leave. The people you want to get rid of cling like barnacles. Of course, once that top tier of people leave, the workload drops onto the second stringers, and if they wanted to work hard and do a good job, they'd have become first stringers. Then your product quality and customer service and high productivity/profitability go out the window. Replacing those people and rebuilding the brand are very, very expensive.
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Old 10-12-2012, 12:11 PM   #57
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I am currently still employed here and missed qualifying for the severance package. My question, for people who have been through this: What are the chances of another package being offered? and adjusting the eligibility? from what I understand, 6k employees accepted, and the goal is 29k total reduction..thanks.
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Old 10-12-2012, 12:51 PM   #58
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I am currently still employed here and missed qualifying for the severance package. My question, for people who have been through this: What are the chances of another package being offered? and adjusting the eligibility? from what I understand, 6k employees accepted, and the goal is 29k total reduction..thanks.
You can always voluntarily approach your management and/or HR and see what they say. However, I wouldn't do so unless you already have an offer in hand from another company, or are ready to pull the plug and retire.
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Old 10-12-2012, 03:17 PM   #59
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You can always voluntarily approach your management and/or HR and see what they say. However, I wouldn't do so unless you already have an offer in hand from another company, or are ready to pull the plug and retire.
Unfortunately If I do this, I wouldn't get the big package that's offered to eligible early retirees. I might just be shown the door with a minimum offer.

I was just asking if there's a chance a company this size would repeat the original offer, if others had been through this.
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Old 10-12-2012, 03:44 PM   #60
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Unfortunately If I do this, I wouldn't get the big package that's offered to eligible early retirees. I might just be shown the door with a minimum offer.

I was just asking if there's a chance a company this size would repeat the original offer, if others had been through this.

As others will likely agree.... the first wave gets the best deal.... it gets worse... and the final people get crap....
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