HP tends to run in a $5 range between earnings reports. Its best results are usually in August and it has just completed a $5 climb out of the $35-$40 range. Expect it to bounce around between $40 and $45 for a while. Sell at $45 and buy on pull backs around $41.
Mark Hurd (HP's CEO) has done an incredible job. He has streamlined operations while at the same time reducing overhead. And this isn't something that he's just started to do becomes 'times are tough'. He's been doing this since he came on board several years ago; as a result, HP is lightyears ahead of the competition from a cost standpoint. Now add in EDS, which HP recently purchased. EDS will provide HP with easy access to government IT Services contract, but there is a LOT of fat inside EDS and Mark Hurd is just the guy who will be able to find it and very quickly set in motion the process to streamline this new investment. Mark's focus on streamlining operations to eliminate costs while growing topline revenue with very profitable services contracts is just the One-Two punch that will propel HP into the future and with it it's stock price. I look for HP to grow much more quickly than the overall market in the years ahead
One Tech stock that's positioned to move up is HPQ. They have plenty of cash and good technicals. I don't believe the Circuit City thing should affect them the way the market's beating it up.
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This is a 1-2 year position, although I may reload it from time to time to lock in gains.
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