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Six analysts are downgrading H-P (HPQ -22.2%) following yesterday's soft guidance and stunning...

Six analysts are downgrading H-P (HPQ -22.2%) following yesterday's soft guidance and stunning announcements. Needham (Underperform) think "HP may have eroded ... Wall Street's confidence in the company;" and Sterne Agee (Neutral) thinks the PC division could be sold at a depressed valuation, and that its sale could hurt bundling opportunities. (previously)
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Comments (3)
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    My oh my, how fleeting are Wall Street's affections.
    19 Aug 2011, 10:05 AM Reply Like
  • kmi
    , contributor
    Comments (4040) | Send Message
     
    I think the analysts are idiots, Google just paid what amounts to 5b for basically Motorola's patents, Nortel,sold it's patents for over 4b, Kodak is marketing its patents, and everyone in the tech world is mired down in patent wars.

     

    HP stands to make a profit just with selling some of the best patents in the industry (Palm was one of the leaders in innovation of the smartphone world), AND then it can sell its PC business, and it gets to keep WebOS to boot.
    19 Aug 2011, 01:45 PM Reply Like
  • radicall
    , contributor
    Comments (534) | Send Message
     
    HP Will sell a business that makes $3 billion a year (PSG makes 17% of the 19billion EBITDA) for around 10 billion to buy Autonomy for about what it will get for selling the PC business. Autonomy earns around $675 billion a year and has an earnings growth rate of only 5%.

     

    So basically you are exchanging a business that makes $3 Billion in profits for a business that makes $675 million in profit - is that a good deal???
    19 Aug 2011, 10:42 PM Reply Like
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