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

To: Brian Sullivan who wrote (46621)	2/16/2012 1:42:37 AM
From: Jurgis Bekepuris	1 Recommendation Read Replies (1) \| Respond to of 78773

HPQ is not ridiculously cheap if you account for its debt. At the time when other tech companies have huge war chests, HPQ is sitting on 23B of net debt and I don't think this even includes Autonomy acquisition (I lost track of when/if this is still happening). I'm also not sure if Meg is a solution to management problems either. We will see. But overall, yes, HPQ, INTC, maybe. 20% lower would be better. ;)

To: Brian Sullivan who wrote (46621)	2/16/2012 1:31:39 PM
From: Brian Sullivan	Read Replies (2) \| Respond to of 78773

HPQ expected earnings per share for next 12 months are 4.49 and yesterday it was trading at $29.12 Giving us a forward PE of 6.5, thus I called it ridiculously cheap. Giving it a more reasonable 9.5 forward PE yields a price target of 42.5 As far as debt; the debt to equity ratio for HPQ is 0.5 which seems quite managable to me. If you are worried about a companies debt I would check the Bond rating and the Bond yeilds, but I suspect you find that HP's rating and yeilds are good. FYI: DELL has a debt to equity ratio of 0.7 which is higher than HPQ