Opinions
Jeff Black
Hewlett-Packard Co
HPQ-N
SELL
Sep 25, 2012
Stock price when the opinion was issued
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Premium contentHP trades at 11.83x compared to Dell’s 28x. It also pays a 3.18% dividend vs. Dell’s 1.28%. Though the two companies make up half the market’s PC sales, HP says its new line of AI PC’s won’t make a dent in their earnings until the second half of 2024 and particularly 2025. The company’s Q2 total revenue for was $12.8 billion, down slightly from last year's $12.91 billion, but better than the $12.59 billion the street expected.
Premium contentHP Inc. is an information technology company, which engages in the provision of personal computing and other access devices, imaging and printing products, and related technologies, solutions, and services. It operates through the following segments: Personal Systems, Printing, and Corporate Investments. The Personal Systems segment offers commercial and consumer desktop and notebook personal computers, workstations, thin clients, commercial tablets and mobility devices, retail point-of-sale systems, displays and other related accessories, software, support, and services for the commercial and consumer markets.
Price is significantly lower than it has been for a number of years. But the company has materially changed as well. Significant change in operations. Have a new CEO. There are a lot of headwinds in the space they are in. Not participating that much in the convergence to mobile. Thinks they will be economically sensitive in a weaker macro environment. If you own, consider triggering a loss. You only have to be out of it 30 days to reposition at a new ACB and be patient for a turnaround over the next few years.