To: PDG who wrote (1073 ) 8/1/1998 10:14:00 AM From: Ted M Read Replies (1) | Respond to of 1164
Hewlett Packard has a market cap of over $50 BIllion, over 100,000 employees, revenue rose 16% with net income of $1.6 billion in the first 6 months of 1998, and NONE of the 24 analysts following report a sell signal on Yahoo!. While there may be some pricing pressure right now, I think we can rest assured that they have deep pockets and will be around for a while. Additionally, if they need to make cutbacks I would think that they wouldn't think of cutting back on their R&D for the internet. CLearly from their recent announcement (which included WARP10) they have big plans. Who knows what the market will do or when announcements will be made? You may want to call the company to get a sense of future developments. When I did I was told that it is likely that there will be additional announcments regarding both the beta testing and continuing developments with HP in upcoming months. If it takes 3-4 months instead of 1, and the market drops 30% I'm not going to worry much because I chose to allocate about 10% in this stock based on it being super-high risk. Even if it goes belly up, which I highly doubt, I will lose only 10% of my portfolio. I happen to believe that the chances that it will double are greater than the chances that it will go to zero, so that's why I'm here. Perhaps you are nervous because of the amount/percentage you have invested--ie the risk to your portfolio as a whole is greater than you are comfortable with. If that is the case than perhaps you should lighten the load. I wish you well. Off topic for those other than PDG--another high risk stock that had a good announcement yesterday is FOCS. Ted