Linked by Howard Fosdick on Wed 29th Aug 2012 20:25 UTC
Hardware, Embedded Systems Can Hewlett-Packard bounce back? Third quarter results are in and they don't look good. Total revenue is down 5% year over year, and profits tanked on a $9.2 billion noncash write-down on the 2008 EDS acquisition. What's HP's strategy? Meg Whitman has now been CEO of the struggling giant for a year. She compares HP's turnaround to that of Starbucks, saying "Usually these kinds of turnarounds take anywhere between four or five years... There's nothing fancy about these turnarounds. This is not advanced business, this is 101." I question if refocusing on core competencies is enough. Maybe HP needs to get into the smartphone and tablet markets. Maybe it needs to expand its services business. Think I'm wrong? Then bet your money on HP stock and get rich. HPQ trades at its lowest point in a decade and sells for an rock bottom forward P/E of 4.2.
Permalink for comment 533161
To read all comments associated with this story, please click here.
Printers and stuff...
by UltraZelda64 on Thu 30th Aug 2012 07:53 UTC
UltraZelda64
Member since:
2006-12-05

When I think of HP, I think of printers, scanners and stuff like that. I've owned a few things by them, and when it comes to printers theirs are the only ones I buy (because, you know, Linux support is pretty important to a me, plus I've always had good experiences with their printers in the past). I never did get the point of them getting into the PC business, never bought one myself, and would never recommend anyone else to get one. I guess it's just that "HP = computer peripherals" image I have. The fat that they bought Compaq--a company I couldn't stand--sure didn't help their image in my mind.

Either way, whatever happens to them, I don't care what happens to their PC division (they can drop it for all I care), but I would be upset if anything happened to their peripherals division. Also, while I haven't bought any of their portable computing devices like tablets, I don't mind seeing them stay in there. But PCs... again, that just doesn't seem right to me.

Reply Score: 2