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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Mid-west who wrote (39553)	10/4/2010 11:48:36 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78680

HPQ - they do generate a lot of FCF but i don't like that they are spending it like drunken sailors on a trip to the Reeperbahn. The purchases of Palm (1.2B$), 3PAR (2.35B$), Arcsight (1.5B$) took care of most of the FCF generated this year already and now with a new CEO in place, I suspect that we see more of the same in the software sector and quite possibly something big. That will keep a lid on the stock price, especially since the CEO is unproven.

To: Mid-west who wrote (39553)	10/5/2010 10:04:57 AM
From: Mattyice	Respond to of 78680

Yeah i agree with Spek as always it seems and also from a pure numbers valuation with you to some degree. I probably like HPQ a little more than him but i am going to continue to wait and let this thing shake out some weak weak shareholders. I still think it is in middle ground and have a feeling especially after i have been diving in to Salesforce for a potential short, that the likes of HPQ will try to BUY it probably paying 30 times price to sales. I start thinking about it more as i am reading through CRM filings and as i have kept up and read most of the filings in HPQ the past year... new HPQ CEO = software guy, 3% of HPQ sales is software = buy CRM for +$25 billion. Just speculation of course, but i think there is still some significant downside risk though HPQ is starting to become attractive.