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

To: Kauz who wrote (45502)	11/16/2011 12:18:26 PM
From: Jurgis Bekepuris	1 Recommendation Read Replies (2) \| Respond to of 78665

I do not subtract GW or IA from equity when calculating ROE. In case of HPQ, the issue is not GW/IA in ROE, the issue is how much business it lost (and will lose) during the management debacle, how much restructuring costs will be there and how much it will lose from overpaying for Autonomy. If you think that all of the above are small/immaterial, then HPQ is a (great) buy. Otherwise, it's not. There's also a question of future management prowess, which won't show up in the current numbers you are looking at. :) This is a big uncertainty for any HPQ investor.