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Technology Stocks : HWP -- Hewlett Packard -- Ignore unavailable to you. Want to Upgrade?

To: Uncle Frank who wrote (2828)	2/3/1999 9:15:00 AM
From: genek	Read Replies (3) \| Respond to of 4722

I am extremely pessimistic when in comes to HWP earnings. They have a pretty shoddy reputation lately when it comes to maintaining earnings growth, and being able to meet earnings estimates. In the last couple of years, it looks like they've had trouble finding another profit center besides inkjet consumables. I see their printer sales providing little potential for upside surprise, with margins continuing to erode on the actual hardware. (Maybe the new enterprise printer w/new printer cartridge has much better margins on consumables, I hear? They're probably looking to PC sales for revenue growth. However, I expect margins to be razor thin -- I'm prejudiced to believe that they're not executing anywhere near as well as DELL, or even CPQ. I expect workstation sales to lag SUNW and IBM, with margin erosion there, too. I expect all their other businesses to be steady, with no potential for upside earnings surprise. So, I'm hanging on to my Feb puts. I look forward to hearing any opinions! Gene