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Technology Stocks : Hewlett-Packard (HPQ) -- Ignore unavailable to you. Want to Upgrade?

To: PCSS who wrote (2609)	2/26/2003 9:56:23 AM
From: The Duke of URL©	Read Replies (1) \| Respond to of 4345

do you have a url?

To: PCSS who wrote (2609)	2/26/2003 12:53:22 PM
From: Elroy	Read Replies (1) \| Respond to of 4345

Although HP beat our and consensus EPS ests, HP's Jan qtr was far from clean, with several issues - ranging from a restatement of segment revs and earnings, a significant shortfall in overall Jan qtr revenues to notably weak cash flow from ops - causing some concern. Go away. HPQ is a $70 billion plus per year multinational, multproduct company. They will never ever have a clean quarter in their history again. Currency, pension income, acquisitions, divestitures, and the like will be with the company for the foreseaable future. As for significant shortfall in revenues, why is a 3% shortfall in its money losing divisions (which, by the way, improved their profitability sequentially) "significant"? As for restating segment revenues and earnings, all that really matters is the total, right? And total earnings improved more than significantly (more than 45% sequentially). Given the top-line shortfall, we are revising our forward ests with our CY03 ests now $73.7B in revs and EPS of $1.29, down from $75.5B and EPS of $1.34. OK, you're lowering your revenue estimate about 3% and your EPS estimate about 4%. Whoop de doo! While HP's valuation remains low - and investors already owning HPQ shares are unlikely to sell based on the January quarter - we also see little that will get new investors excited at this point. $1.29 in EPS for a $16 stock seems reasonably exciting to me. Many IT hardware companies (SUNW, EMC, GTW) are struggling to make a penny. And Laura, if they had sold another $500 million worth of money losing PCs and servers, would you then be excited? Why??? Elroy (ranting away!!)