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

To: Charles Tutt who wrote (2632)	2/26/2003 4:36:40 PM
From: The Duke of URL©	Read Replies (1) \| Respond to of 4345

read my previous post, her analysis is just wrong. In the quote you have she is referring to certain overhead expenses that are more properly allocated as an indirect expense. She doesn't understand what's happening and thinks hp is trying to put something over on her and just freaked. There is no other rational explaination. She downgraded based on gross REVENUES not net profit, which stays the same. The total net profit stays the same whether certain expenses are direct or indirect. The rule is to allocate those expenses directly to a division which the division can control and allocate them indirectly if the division cannot control them. Its a motivation and cost control thingy. HP's big concern is enterprise servers where business is slow and dell is playing pac man on their ass. But I am speaking of loans (credit) that is advanced to a buyer. Those have been put in cogs and taken out of sga, according to the conf call edit: I have now reread you url. Neff is talking about 40MM. If that amount was moved out of PC to indirect, he has a math point, But if those costs were not pc costs then they should not be in the PC division. In English, the more pc's hp sells, the more printers with pcs they sell; if the expense is really a printer expense it is better to put it somewhere else rather than have the pc pay for the printer. But ALL of this is Bullshit. There is no smoking gun. You're talking about rearainging deck chairs. :)) No allusion intended. These people don't understand the business and now with the new sec non disclosure rules, reg fd, without the company to help them, they know not. THESE are not the friggin' issues. Where is the game plan to confront dell on the enterprise server market, altho, hp did take a shot at cisco with a new tcpip NAS router.