real-time news and commentary for investors
Thursday, Oct 10
Chanos still short H-P, continues to like Apple/Samsung
- H-P's (HPQ -1.9%) market-pleasing analyst day guidance (I, II) hasn't made Jim Chanos less bearish about the IT giant. "They're talking about margins improving. I'm just hard-pressed to see how margins are going to improve in any of their businesses given the secular headwinds that are going on."
- Chanos, who has been short H-P for more than a year - his bet did well in 2012, but hasn't done so in 2013 - declares the company's PC, printing, and enterprise ops to all be "under assault." "Turning around tech companies - IBM in the early '90s notwithstanding - is a very difficult undertaking."
- Likewise, Chanos remains long Apple (AAPL +0.8%) and Samsung (SSNLF.PK, SSNGY.OB), viewing them as mobile offsets for his PC shorts. "[Samsung] is outright, outright very, very cheap ... unlike a lot of guys like Hewlett and others who go out and acquire their R&D ... Samsung actually does it homegrown. As does Apple basically."
- Chanos also discloses he's now long cloud HR/ERP software vendor Workday (WDAY +3.9%), using it as a hedge for an unnamed cloud software short he calls "an accounting nightmare."