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

To: Dennis 3 who wrote (47528)4/19/2012 2:24:35 PM
From: Jurgis Bekepuris  Respond to of 78628
 
I agree with you. IBM is not cheap here, but perhaps it's still OK long-term holding (as Buffett's purchase indicates). HPQ is attractive if they can clean up the management and company direction. I am still uncertain if they are on the right track.



To: Dennis 3 who wrote (47528)4/19/2012 3:29:18 PM
From: Spekulatius  Read Replies (2) | Respond to of 78628
 
Dennis 3
The balance sheet metrics are misleading - when looking at HPQ vs DELL. DELL has a similar D/E ratio than HPQ but that is because HPQ E is bloated by merger related goodwill. HPQ more meaningful tangible equity is at -16B$.

DELL's balance sheet look great, cash is 2x the LT debt, while HPQ balance sheet looks like crap.



To: Dennis 3 who wrote (47528)4/19/2012 3:53:42 PM
From: research1234  Read Replies (1) | Respond to of 78628
 
I could be wrong, but I think IBM is much more of a consulting/software company than either Dell of HP, which would explain the higher earnings, p/s and p/b multiples as well as higher ROE. And consulting tends to generate much higher returns than hardware/software maintenence, which I think makes up the bulk of HP and Dell non-equipment revenue.


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