Sunday, July 29, 2012

"It's time for Wall Street and investors to stop hating on the electronics hardware stocks. Hardware sales generate large profit revenues and hardware companies employ lots of people, which is what all countries need right now. We should support them"

Dow Jones Industrial Average  13075.66 (UP) Week ending 07-27-2012

Hewlett Packard Co. (Symbol HPQ, $18.57), according to Smart money's website, employs  349,600 worldwide. They generate $355,403 in revenues per employee. HPQ turns their inventory over at a very efficient 12.79 times a year

Yet HPQ,  that does gigantic hardware sales, (Over 127 Billion dollars in revenues 2011), and other companies like them, get no love from wall street investors. In fact, the company's stock is down 48.76 percent for the year. 

Stop the Hating!  First of all , HPQ is provider of products, technologies, software, solutions and services. Second, this particular company is run by a new dynamic CEO, 
Meg Whitman.

Meg has this company poised to earn $4.06 per share in 2012 and $4.39 cents a share for 2013. Not bad earnings for a company whose stock is trading at $18. In fact, the book value on the stock is currently $19.40, so you are below book value. 

The forward PE on this stock is 4.58. The PEG ratio is 0.80 so plenty of room to grow the stock price. Also add in a 2.84% dividend to add to your total return on the stock.

Meg isn't sitting on her hands either. HPQ is fully involved in the "cloud" and increasing margins with technology in that area. Hewlett Packard will be providing the cloud solution for Alcatel-Lucent's new LightCube breakthrough in antenna tower technology. This will be very important with the rapid growth in the SmartPhones and the escalation of mobile data use.

The big thing here with this stock is that they still produce over 7 Billion in net profit yearly while employing 349,000 hard working people who can go out and buy other goods and services. Companies like these should be rewarded to add further to their employment roles. 

Doesn't that make sense?

So go buy some HPQ this week, insiders were buying it at $22.00 per share, so you have to be in a pretty good area here at $18 and change. 

I mean the gentleman below started the "Silicon Valley". Show a little respect for HPQ.

Stanford alumni David Packard and William Hewlett in their Palo Alto garage, later dubbed "the Birthplace of Silicon Valley." 

  Have a fruitful summer. Go start a Blog and write about something that you are interested in. You will learn much about yourself.


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