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John D. Thomason
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I am a retired (as of September 2001) IT manager. While I have always followed the markets, during my IT career my market research time was limited. Upon retiring, I have focused full-time on the markets and my own market education and growth. I have evolved my investment/trading strategy over... More
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  • Hewlett Packard - What I Am Thankful For 0 comments
    Nov 21, 2012 9:46 AM | about stocks: HPQ

    A Thanksgiving Day message regarding recent developments at Hewlett Packard (NYSE:HPQ), as I am thankful that I did not express the innermost thoughts on HPQ that I was secretly thinking at the time I discussed the stock in my recent article, Cisco, Intel, Microsoft, Hewlett-Packard: Value Stocks, Seriously. Let me explain further:

    Hewlett Packard (HPQ) has been in the news again recently, as the company reported earnings yesterday (Tuesday, 11/20/2012). Results were not too bad, actually, except for one thing - a huge multi-billion dollar write down being taken on the firm's 2011 acquisition of Autonomy, an English software firm. In addition to the purchase being a mistake from all perspectives, the pain is even worse than just a poor business decision, as charges of misrepresentation and fraud are now being leveled at the target firm regarding the financials that were the basis for the acquisition price. HPQ dropped to barely double digits yesterday, closing at $11.71. In my recent article referenced above, I surmised that HPQ was at best a speculation stock, with the decline likely continuing unless something changed for the better. Frankly, at the time, I was thinking the $14 range would probably mark a bottom, with a slow, creeping recovery possible over the next couple of years. But I didn't say that, for which, in the spirit of the upcoming holiday, as noted above, I'm thankful. So where does HPQ go from here? All I can say is a purchase now would fare better than any buys made in the last several years, but would the speculator see a profit? I won't say it is not possible, but I will say it is not a sure thing.

    Disclosure: I am long HPQ.

    Additional disclosure: This falls under the heading of "do as I say, not as I do". Live & learn, when you think it cannot get any worse, you are probably wrong!

    Stocks: HPQ
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