Hewlett-Packard

[Hamlet]

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.

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.

 

[Chuckanut]

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.

 

[GrayHare]

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.

 

[MDJO]

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.

 

[OrcasIslandBound]

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".

 

[cute fuzzy bunny]

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.

 

[Livefree]

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.

 

[Jay_Gatsby]

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.

 

[Livefree]

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.

 

[Texas Proud]

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....

 

[ERD50]

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

I have only one data point, but that was the trend (I got one of the better deals).

-ERD50