Hewlett-Packard Company (NYSE:HPQ)

HP is reinventing the desktop computer.

Real money synthetic short. Balance sheet is toxic; after backing out their intangibles (which I think are due a 85% haircut) they are insolvent.

Great computers and making good EPS.

They lost the formula and are not growing in the right markets

Deteriorating business, PCs and laptops are losing share to tablets and mobile

fool.com/investing/general/2013/04/11/the-pc-crushes-microsoft-hewlett-packard-and-intel.aspx

"The PC Crushes Microsoft, Hewlett-Packard, and Intel" :

[...] The big news today is that the PC market just posted the biggest drop in nearly two decades, according to IDC's latest estimates. Worldwide PC units fell by 14% in the first quarter, much worse than the 7.7% decline IDC had previously braced itself for. Further, IDC's 7.7% prediction had already been reduced, so no one was prepared for the enormous dropoff.

Windows 8 has done the PC market no favors. In fact, IDC says Microsoft's new operating system platform slowed the market, as consumers aren't too impressed by the radical interface changes that Microsoft is pursuing. Windows 8 is a bold new vision, but it would seem that it's too bold for the average user.

For better or for worse, Microsoft, HP, and Intel all continue to rely heavily on the PC market, even as each company has tried diversifying away from it. [...]

(See the below source-link for a chart of the "respective operating segments that are still tied directly to PC sales" and the rest of the article.)

fool.com/investing/general/2013/04/11/the-pc-crushes-microsoft-hewlett-packard-and-intel.aspx

Recent board changes and new strategies will help HP grow in the future but it will not outperform the S&P.

Trading below industry average valuations despite uptrend of the last 2-3 months. Insider ownership strongly uptrended.

In sum, this looks like it's bottomed out after a long bad stretch.

higher price but nothing else is really all that different....Im betting on a correction..overbought

Magic formula pick

I just don't believe that Whitman will be able to save this behemoth from itself. They were caught napping, have had a ten year streak of awful decision-making and leadership and their products are not really that desirable anymore.

It takes a long time to turn around an aircraft carrier and even longer to to turn around one that is damaged.

The recent yen correction will provide a big benefit to printing margins, and printing already drives 30% or more of HP's profit. While the services business will not fix itself all at once, HP has a credible plan to turn it around over the next few years by focusing on higher value-added offerings. The current HP valuation is just too pessimistic.

Dowjones in maximums.

Why not? Might take awhile...

Hewlett-Packard the iconic Electronics and Test & Measurement company started by the founders has widely diversified and become a Huge Computer Services and Software Services Company. Some acquisitions has done very well -- some, of course, not-so-Much.

The last acquisition of a British Software & Service company was acquired at a price/value of perhaps five to eight times its real worth by a prior company management. Board of Directors Member and General Partner of Venture Capital Firm has assumed the CEO position at a salary of one-dollar per year.

Meg Whitman is a talented, experienced executive who will be successful in turning Hewlett-Packard(HPQ) around. The process will take several years however.

I have great confidence in the new CEO as well in the promise of the company's portfolio of businesses.

Hewlett-Packard(HPQ) in a long-term, turn-around current BUY!!

Kahuna, CFA
Investment Professional
1974 - Present

They engineer great products and its possible to re-engineer management going forward

HPQ is an innovative company, I believe it will come out of the predicament stronger than before.

hp is a Dow company. it has over 300000 employees all over the world. Companies with that size and clout don't die easy. They face the problems and they deal with them, the way that Meg Whitman is doing right now. Innovation has been hp's strength for years whether that came in house or through acquisitions. Last acquisitions were no success so they have to turn in house to look for innovation.Once they succeed the company will turn around fast. Hp has the network, the channels and the experience to deliver anything all over the world. Cost saving tactics will start paying off next year and the balance sheet will look much better.

2013 Small Dog of the Dow pick