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

To: Paul Senior who wrote (45199)	10/28/2011 12:15:28 PM
From: Jurgis Bekepuris	Read Replies (2) \| Respond to of 78748

HPQ: Honestly, I sold out at the bottom. IMHO it's still a company with a lot of brand value, a lot of good products and a lot of technology. With the right leadership and execution, they can have a lot of sales and earnings. I just thought that the board was pretty dysfunctional and I don't know if Whitman + Lane will be great for the company. It's tough for people to be yanked in different directions all the time. What happens if this is not the last of reorgs and direction changes? Product sales and margin trend wise HPQ is not easy to analyze. It has some moat in terms of brand and enterprise relationships, but it's not a huge one IMO. The PC and mobile business debacle definitely weakened their position. Still it would be tough for me to evaluate the effect. Perhaps looking at .43 PSR is the right criterion to say that it's cheap. Looking at it another way, HPQ is not in such a deep crap as NOK and RIMM are in terms of product obsolescence and need to reinvent the company (or most of its products). So it may be more attractive than NOK or RIMM as a potential turnaround. OTOH, if NOK turns around it could easily go 2x-4x in ideal case. HPQ, I'd say 2x is optimistic limit, since it did not lose so much as NOK did. All these three companies are trading at similar PSRs