ESRwannabe
Full time employment: Posting here.
- Joined
- Mar 19, 2010
- Messages
- 889
I'm curious what people think about Hewlett-Packard and the slaughter they got last Friday. They went down around 20%. I think they really flubbed up the communication, but I think they were oversold.
I think getting out of the PC business is a good idea as long as it doesn't drag on their ability to sell higher margin stuff like printers, servers, services, etc. The PC business may be worth having if it gets their foot in the door on sales that they may not otherwise have easy access to. I'm sure this has all been though out. Getting rid of the PC business didn't hurt IBM after all.
I don't think the Palm screwup is that big of a deal. I'm guessing the patents they got will be worth the $1 billion alone given the action around nortel and motorola patents recently.
The $10 billion software purchase seems fine to me as well. The thing about this purchase and the skype pruchase by M$ not long ago is that they are using foreign cash to buy these assets up. So, I figure they don't care if they pay 35% too much for them as they can't repatriate that money to the shareholders without paying 35% tax on it. I think this is why both of these two purchases were/are so rich.
I put in a limit order this morning before going to work 100 shares limited up to $24 per share. Unfortunately, I don't think my order will be hit. Maybe I will bump it up to $25 when I get home and see what happens the next day.
I agree with their strategy and like their strategy, provided getting rid of PCs doesn't hurt their sales of other stuff. What do you all think?
I think getting out of the PC business is a good idea as long as it doesn't drag on their ability to sell higher margin stuff like printers, servers, services, etc. The PC business may be worth having if it gets their foot in the door on sales that they may not otherwise have easy access to. I'm sure this has all been though out. Getting rid of the PC business didn't hurt IBM after all.
I don't think the Palm screwup is that big of a deal. I'm guessing the patents they got will be worth the $1 billion alone given the action around nortel and motorola patents recently.
The $10 billion software purchase seems fine to me as well. The thing about this purchase and the skype pruchase by M$ not long ago is that they are using foreign cash to buy these assets up. So, I figure they don't care if they pay 35% too much for them as they can't repatriate that money to the shareholders without paying 35% tax on it. I think this is why both of these two purchases were/are so rich.
I put in a limit order this morning before going to work 100 shares limited up to $24 per share. Unfortunately, I don't think my order will be hit. Maybe I will bump it up to $25 when I get home and see what happens the next day.
I agree with their strategy and like their strategy, provided getting rid of PCs doesn't hurt their sales of other stuff. What do you all think?