Seeking Alpha

Will Ralph Whitworth mount another H-P activist effort?

  • Wells Fargo's Maynard Um (Outperform) observes H-P (HPQ) board member/Relational Investors founder Ralph Whitworth's standstill agreement with the company (reached in 2011) ends this November.
  • Once the agreement ends, Relational (owns 34.5M shares) will be free to make another activist push if it wishes. And if it does, the nosedive just taken by H-P shares in response to the company's FQ3 revenue miss and FY14 forecast might translate into a receptive audience.
  • Bernstein's Tony Sacconaghi, who assigns H-P a sum-of-the-parts value of $34/share, is thinking along similar lines. "The stock remains the most inexpensive S&P 500 name on [a price/forward earnings basis]. We believe that we could see incremental pressure from the Board or outsiders for the company to look to take more significant action."
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Comments (2)
  • Philip Marlowe
    , contributor
    Comments (1243) | Send Message
     
    What HP needs now is another CEO and another change of direction. Wow I meant this sarcastically when I initially typed it out but now that it is all typed ... it sounds kind of compelling.
    23 Aug 2013, 08:07 PM Reply Like
  • jstratt
    , contributor
    Comments (2986) | Send Message
     
    HPQ seems primed for a Hedge fund related carving. My guess is it will end up in pieces like a thanksgiving turkey.
    24 Aug 2013, 06:46 PM Reply Like
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