Based on the news coming out of Dell (DELL) last week, why should we think things are going to be any different at Hewlett Packard (HPQ). HP is going to release its earnings Tuesday after the close. Many of the shorts in the stock have already covered their positions, and its unlikely that the news coming out of HP is going to be any better than the news released from Dell.
We all know that HP is a turnaround story, but the fortunes of a company do not turn on a dime. PC makers are dropping prices to gain market share, and this cannot be good news for revenues or margins. Printer giant, Lexmark issued mix guidance in their latest conference call, and even mentioned price reductions were forthcoming.
The momentum crowd has bought into the hype over new CEO Mark Hurd. Hurd will fix the company in time, but the key word here is TIME. Earnings estimates for the company are coming down, and its time for us to sell and exercise some patients.
Hewlett Packard is currently trading at $24, and will be sold from the Investor Alert portfolio immediately.
Comments (1)
I've managed to save up roughly $88232 in my bank account, but I'm not sure if I should buy a house or not. Do you think the market is stable or do you think that home prices will decrease by a lot?
Posted by Courtney Gidts | November 15, 2005 9:15 PM
Posted on November 15, 2005 21:15