ALL, I think I may finally sell my remaining CPQ holdings, even though the TAX man will be very happy.
This is the first time in recent years, that CPQ management has missed by this magnitude. I am also worried about the timing. Very late in the Q for CPQ to issue a warning. I think CPQ's next move will be cost cutting which could buoy the stock, but hurt morale and execution of business plans.
CPQ could visit the teens, and then a slow rebound. I have rode CPQ for over 10 years. DELL may be the place for a PC sector investment. I have owned DELL also for many years, albeit a smaller initial investment, but it appears to me, the street may in fact reward DELL more quickly after any correction.
On the positive side however, CPQ remains a profitable company, and will continue to grow. The growth though will be slower.
But I fear Wall Street may punish CPQ for the next few Q's.
JMO, LF
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