Good morning Frank,
What took happend to HWP was a disapponiment. Here is a company that
has returned 700% to employees over past 9 year, and get kicked arround becasue it was one nicle short of expectations. HWP is expected to continue to perfrom 30% per year as it has done in the
past. I am afraid that that is impossible. For a company the size
of HWP that can't be maintained. As the chairman of HP said, the best
we could look forward to is a double diget grouth, give or take, 20%
per year, max.
Now, the problem here is not the HWP, the problem lies with the investors. Most people on the SI entred the market during the past 7 years. Grouth and the bull market is all they remmber. Does who
expect such perforamnces should be prepared that we are nearing the
end of the rapid grouth period, which has been the aim of the Feds.
all long. With this in back of the mind, then we should slowly switch
to more defenssive stocks, KO, GE, MRK, etc. Just look at the KO performance we are sitting over 68. Why such a perforamnce? Becasue
a great deal of investors seeing the end of the grouth, are switching
money from Hi Tech to more conservative stocks.
Kind Regards,
Yaacov |
