Entering text into the input field will update the search result below

Looking To Put Money To Work In Hewlett Packard Enterprise

Individual Trader profile picture
Individual Trader


  • Although guidance has been scrapped for the second quarter, the firm's valuation remains compelling.
  • Buybacks have been suspended to protect the dividend.
  • We will wait until the stock bottoms. Looking to put the odds in our favor as much as possible.
  • Looking for more stock ideas like this one? Get them exclusively at Elevation Code. Get started today »

As I write (May 4th), the S&P 500 has dropped below 2800. This means as we outlined in a recent video that the odds are now very high that the main equity indices such as the S&P 500 are dropping into a daily cycle low. The reason being is that Monday, the 4th is the 29th day of this daily cycle. Therefore, considering how far we remain off this daily cycle highs (close to 150 handles) and the duration of same, we maintain lower prices remain ahead of us over the next two to three weeks.

If we get a violent downturn, we will see much higher VIX prices. In fact, due to sustained selling in recent sessions, the VIX has already bounced from a low of just over 31 last Wednesday to now trading back up around 40.

A higher VIX benefits options sellers as higher premiums can be extracted. Before we get into potential trading strategies at the next DCL, let's delve into the underlying Hewlett Packard Enterprise Company (NYSE:HPE) which we have been focusing on. HPE which incidentally has lost close to 50% of its market-cap over the past 6 months alone is now trading under $10 a share. This brings distinct advantages when it comes to trading this stock. First though, before we get into strategy, let's look at how some key financials have been trending, its dividend as well as the valuation of HPE.

Firstly, if we look at the chart above, we can see that we are seeing bullish signals on the RSI momentum indicator. Remember, we believe that all known fundamentals reflect themselves in the technical chart. This leads us to believe that HPE may bottom here ahead of the market in earnest.

From a value perspective, HPE looks very cheap at present as


Elevation Code's blueprint is simple. To relentlessly be on the hunt for attractive setup's through value plays, swing plays or volatility plays. Trading a wide range of strategies gives us massive diversification which is key. We started with $100k. The portfolio will not stop until it reaches $1 million

Join Us here


This article was written by

Individual Trader profile picture
http://www.individualtrader.net/Investing & Trading Opportunist

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (6)

Rand Walker profile picture
Bought some Jan calls. Reading through the call transcript they seem confident of capturing most if not all of their backlog. Next ER should be very solid.

Not sure about Nori though. Is he over-reacting, or is this a case of "never let a crisis go to waste"?
Their cloud business is not amazing.
Chris Lau profile picture
Are any of you buying this stock in light of the dividend resuming and the stock at 11% discount post earnings?

This is one of DIY distractions.
HPE stock price hasn’t even recovered yet. It is still 40% below where it was at the beginning of 2020.
Agree. Not sure why this is so cheap compared to other sector companies. I think earnings could surprise too. I could see HPE hitting $13 as we head into earnings on May 21st.
Rand Walker profile picture
I'm long the name (via long-dated call options) but I'm concerned about the medium term outlook for enterprise server sales. When the working-from-home capacity expansion is over will we see budgetary belt-tightening, as we saw after the panic addition of server capacity in response to Spectre/Meltdown? This is in addition to concerns about an economic down-turn.
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

About HPE

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on HPE

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.