Hewlett-Packard (HPQ) Message Board

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Technology Stocks : Hewlett-Packard (HPQ)

HPQ 24.43

+1.9%

12:59 PM EST

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To: Dave B who wrote (61)	5/7/2002 9:05:43 AM
From: Jerome	Read Replies (2) of 4345

>>>HP is losing money in the PC business, but that the two organizations together could make money. I had to laugh at the "but we'll make it up on volume" argument she presented.<<< Profit or loss is volume related. Look at the car business. If Ford (or any other auto company )makes and sells 700,000 units of a model the loss is substancial. At 1,000,000 units the model breaks even at 1,300,000 the profits just roll in at a rapid pace. The old HWP is the sole supplier of PS's to Wal Mart at no profit margins. The old CPQ supplies Office depot with about six models always in stock plus a kiosk (endcap) where the customer can order any variation of the model and Office Depot gets a small percentage of the sale, without carrying the inventory. CPQ has the better sales model. The new HPQ will have a better business plan than the old HWP or CPQ. JMO...Jerome

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