SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Madharry who wrote (49217)8/26/2012 2:15:58 PM
From: Paul Senior1 Recommendation  Read Replies (3) of 78758
 
HPQ: "equipment costs of $20 a year to be able to print."

I've an HP LaserJet 1022 (an old printer) for which I have bought replacement cartridges about every 18 months or so from my local big box retailer. Price about $50 or $60+ (can't remember). They were out of stock about a month ago, so I decided to check Amazon. I've always been reluctant to buy off-brand cartridges, but I was astonished at the prices that I now saw -- one brand about $8; another brand $12. Whoa! And several of the user reviews seemed positive. So taking a chance for $20, I ordered one of each off-brand. And so far, the one I installed seems to be working out okay. (Of course, it's too soon to see what the useful life will be.) As a holder of a few shares of HPQ, this has made me wonder just how profitable the "razor blade" printer model is really working out for HP, given the availability of apparently much less expensive competitor cartridges. And what I should expect going forward from HP's business and the stock. So now I'm wavering if I will hold shares or sell for something where the business prospects are more visible to me.

===
I keep looking at Lexmark which is also a beat down stock. My experience now with my printer cartridges makes me wonder if Lexmark might be in a printer market saturated from years of competition and now as Clownbuck suggests--a drop in usage. To such an extent that LXK might be a value trap even at its low price and dividend yield.
finance.yahoo.com
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News