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Chief Market Strategist Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial... More
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InTheMoneyStocks.com
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  • Hewlett-Packard May Be On Its Last Circuit 3 comments
    Mar 25, 2014 2:01 PM | about stocks: HPQ

    Hewlett-Packard Company (NYSE:HPQ) continues to do its best to drive their stock price higher. The feeble attempts are beginning to smell of desperation. Just a couple days ago, CEO Meg Whitman said the company would be getting into 3-D printing as early as this summer. However, yesterday, the company quickly back tracked, saying it was further down the line.

    What makes this company a sell? First, the chart put in a classic topping tail just days ago. When a topping tail forms at multi year highs, it signals a very likely exhaustion top and reversal. Next, we must all put on our big boy pants and recognize that the stock is up from $11.50 in late 2012. With the current price of $32.21, this makes for an approximate 200% move in just over a year and a half. For an old school tech company, this has far exceeded its common sense range and reeks of a bloated pig.

    As the company tries to fabricate the next big story that will drive the stock up, smart investors are noting the signals and selling or shorting. I myself gave this out as an alert to my members as a short trade. It fits the criteria for a multi-month pull back candidate to the $27.50 level.

    Gareth Soloway
    InTheMoneyStocks.com

    Stocks: HPQ
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Comments (3)
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  • Willow Street Investments
    , contributor
    Comments (999) | Send Message
     
    Sounds like a signal to hold it to me....which is what I will do.
    25 Mar, 03:19 PM Reply Like
  • Fred Piard
    , contributor
    Comments (640) | Send Message
     
    "this makes for an approximate 200% move in just over a year and a half".
    ...after loosing 3/4 of its value in the 3 previous years. Chart looks not so bad on all time frames. I like the inverse H&S on the monthly chart.
    http://bit.ly/QcT8ix
    Forward PE is at 8.2. A boring cash machine.
    25 Mar, 04:33 PM Reply Like
  • TDune75
    , contributor
    Comments (146) | Send Message
     
    The author selectively ignores many factors for the stated $11.50 stock price low of $HPQ. Selectivity doesn't end there. Why is the author taking such a short-term view of HP stock price? Fred Piard has a great point, look at the chart in all time frames.

     

    At this point, anyone shorting $HPQ are going to get "creamed", unless there's a total market correction/melt-down. This stock has a lot more room to run with such low P/E ratio's, high cash flow and reasonably low long-term debt.
    26 Mar, 02:30 AM Reply Like
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