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Technology Stocks : Hewlett-Packard (HPQ)
HPQ 22.12-0.7%Jan 2 9:30 AM EST
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To: Lynn who started this subject5/4/2002 11:56:57 PM
From: E_K_S   of 4345
 
Will the new HPQ get a downgrade in their credit rating by Moody's?
(http://finance.news.com.au/common/story_page/0,4057,4259613%255E462,00.html)

From the article: "...But credit agencies Moody's Investors Service and Standard and Poor's remain sceptical.

In a recent review, Moody's said it may lower HP's credit rating because of the "significant" risks associated with integrating the firms, while S and P maintained its negative credit outlook, citing similar concerns..."

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Sales may fall by 10% during integration period . . .

From the article: "..."The medium to longer-term risk is that morale among HP and Compaq employees wanes, triggering defections in key employees or that the integration challenges prove to be even harder than expected," said Sacconaghi, who estimates that integration problems could lead to a sales decline of more than 10 per cent..."

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Hopefully this is already priced into the stock but I expect the stock to be flat for at least eight months. Maybe it might be a good strategy to sell some covered calls while we wait for the combination to be completed.

Anybody know if they started trading options on HPQ?

EKS
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