Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Brian Sullivan who wrote (46630)	2/16/2012 1:51:36 PM
From: Brian Sullivan	Read Replies (1) \| Respond to of 78774

Compare HPQ at a 6.5 forward PE with Warren Buffett's nouveau favorite "value" stock in Technology: IBM expected next years earnings of 16.43, giving us a forward PE of 11.7

To: Brian Sullivan who wrote (46630)	2/16/2012 2:08:15 PM
From: Jurgis Bekepuris	1 Recommendation Respond to of 78774

DELL has a debt to equity ratio of 0.7 which is higher than HPQ You might want to understand what net debt is. DELL has 14B+ cash with 5B debt. HPQ has 8B cash and 30B debt. the debt to equity ratio for HPQ is 0.5 which seems quite managable to me. Nobody said it was unmanageable. But if you think that having 22B net debt is better or comparable to having 10B net cash (DELL) or even more for other tech companies mentioned, you think rather strangely.