Hewlett-Packard (HPQ): Another great quarter
2-19-08: Hewlett Packard (HPQ) is on a roll. Despite the recent gloom and doom attitude towards the tech sector, HP reported another great quarter driven by strong PC sales. According to the company’s earning report, revenue is up 13% and net profit is up a whopping 38%. For a company this size to report these numbers is nothing short of impressive. It appears management is executing well on their strategies. Currently trading in the mid $40 per share, we believed HPQ is still a good value.
HP’s stock was in the mid $50 a few months ago. The recent discount in the stock was primarily driven by the recent stock market turmoil. Overall, core business is doing great. HP maintains a sizeable cash position, which should come in handy if the economy continues to slide. As you know, cash is king in a poor economy. More importantly, HP maintains the #1 position in PC sales and recent acquisitions such as Mercury Interactive are beginning to pay off.
We suspect the stock will continue to rise in the coming days, but should fall back as investors will take profit. Therefore, don’t jump in just yet. Be patient and attempt to acquire HPQ in the mid $40s.
Congrats to HPQ for another great quarter!!
