rjm77me's Blog : HPQ good trading vehicle leading to earning - SAP showing some buying

Bought HPQ on dip today in real account for better or worse - SAP holding its own ground so far.

Expect some weakness on Monday
CEO Mark Hurd Resigns; CFO Cathie Lesjak Appointed Interim CEO; HP Announces Preliminary Results and Raises Full-year Outlook Hurd's decision was made following an investigation by outside legal counsel and the General Counsel's Office, overseen by the Board, of the facts and circumstances surrounding a claim of sexual harassment against Hurd and HP by a former contractor to HP. The investigation determined there was no violation of HP's sexual harassment policy, but did find violations of HP's Standards of Business Conduc

Was forced to issue due to CEO resignation
issues preliminary Q3 EPS above prior guidance; sees Q4 EPS, revs in-line; raises FY10 EPS and rev guidance above consensus (46.30 -0.05)

Co issues upside guidance for Q3 (Jul), sees EPS of ~$1.08 vs. $1.07 Thomson Reuters consensus and guidance of $1.05-1.07. Co issues in-line guidance for Q4 (Oct), sees EPS of $1.25-1.27 vs. $1.26 Thomson Reuters consensus; sees Q4 (Oct) revs of $32.5-32.7 bln vs. $32.63 bln Thomson Reuters consensus. Co raises guidance for FY10 (Oct), sees EPS of $4.49-4.51 vs. $4.49 Thomson Reuters consensus, up from $4.45-4.50 previously; sees FY10 (Oct) revs of $125.3-125.5 bln vs. $124.52 bln Thomson Reuters consensus, up from $123.7-124.9 bln previously.

This is classical Joker response BY 3j - The stocks DO drop 10% on bad news.
If one is going to run scared off odd misfortune - then shut your computer and go home and never trade again
When I wrote some weakness AT 4:15 pm - I did not know the extentent of weakness. NIMBLE TRADERS WHO ARE WATCHING THE MARKET CAN GET OUT IN AFTER HOURS MARKET BY TAKING SMALL LOSS - and make money by going short.
That is where diversification comes to play. Average trader should never invest more than 10% in any given stock at any given time - so 1% will not kill the portfolio.
Last laugh is really on him = I bought 5 calls at 2.11 and sold at 2.39 by the end od day - meaning no exposure in real money account. That buys lot of cool ones bud 3J. Professioal traders some times are saved by luck and some time take a loss.
I feel sorry for folks like HP employees, who have lot of HPQ stock. hOW MANY MUTUAL FUNDS HAVE hpq IN THEIR PORTFOLIO AND EVERY ONE WHO HELD SOME STAKE SOME TIME WIN AND SOME TIME .....
FOR EVERY ONE ELSE - PLEASE NEVER LAUGH AT ANY ONE'S ELSE MISERY - who knows what is around the corner for you.
MISERY COMES CALLING FROM TIME TO TIME - LIKE GETTING HIT BY A TRUCK ON CROSS SECTION WHICH FAILED TO STOP AT A TRAFFFIC LIGHT. A loss of 2% in a portfolio is a minor in comparison.
Where the stock trades on Monday is any one's guess??? It will be down more or less 10% by current indication.
By the way I enjoyed a cup of Cappicino while I wrote this blog and that should give 3J some food to snicker about.

Another piece of info - some folks knew or info was leaked out some time during day August 45 Put contract qty traded today was2,374 Vs total open inerest of 7,602 contracts. That is more like insider trading for SEC to figure out. Normal day may see only 300 contract traded for this particular put option. So 8X number of put contracts is siginificant number that is 237,400 shares short and 59 cents mean $ 3.25 on Moday morning.

Hey rjm77me,

Great analysis of a very interesting situation.

MAGE

Hey rjm77me,

Great analysis of a very interesting situation.

MAGE

Joker ended up deleting his notes on HPQ on Friday. He not did like kaching music. $140 was a too small profit for him. For me it was 7% profit in 6 hours.
I guess Joker laughed, cried / had too many cool ones to drown his sorrow / may be fumed a bit and removed his remarks for this blog. I am glad I sold. I sure was tempted to hold and add to existing positions.
Lady luck was on my side.