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 (1572) | 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 (3932) | 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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