HPQ smoke screen - spying scandal
The HP (HPQ) spy scandal keeps getting more interesting by the day. In fact, it is so interesting that some investors have forgotten about the great quarter the company recently delivered. The stock price is taking a big hit today, down approximately 5%. It is unfortunate, but the company’s financial success is being overshadowed by this scandal. This is an excellent opportunity to consider buying the stock at a reduced price. While the spy scandal is bad PR, the company’s fundamental remains intact and should have no bearing on the business. Even if the CEO is found to have played some role in the scandal, he’ll likely receive a slap on the risk, if that. At $35, HPQ is still expensive compared to its competitors. However, if the stock keeps falls a few more points, to let say $32.50, it would be the time to buy. Once the smoke clears, the company will still be doing well, which should then push the stock price to the upper 30’s or possibly low 40’s.
