OK, so Meg Whitman said it’s going to take some time to turn around Hewlett-Packard. But who much time? On September 22, 2011 Meg Whitman will have been at the helm of HP for a full year. The stock is 10 cents above it’s 52 week low, trading for $16.77 a share. Three years ago it was a $50 stock.
If she really believes in the company, and she’s the person to turn around the once golden tech company, why not put down some money, buy some stock to show just how much she believes in Hewlett-Packard.
If you look at the chart of HPQ, you can see it’s pretty much done nothing but go down since she took over. If you’re a Hewlett-Packard shareholder, the only thing that’s not making you extremely frustrated is the stock has a dividend. And as the stock tanks the dividend is looking better and better for those who haven’t made a purchase, yet. The dividend yield is over 3% right now.
I’m betting that if Meg Whitman steps in and makes a large purchase that this will call the bottom in Hewlett-Packard. Well, this is of course as long as Apple doesn’t start making printers and or everything else HP makes. And that HP doesn’t make any more stupid purchases.
The big worry though with HP is their debt level, in large part due to poor purchases and share buy backs on borrowed money.
Consider this: Since Apple Inc. shifted the direction of computing with the release of the iPhone in June 2007, HP’s market value has plunged by60 percent, to $35 billion. During that time, HP has spent more than $40 billion on dozens of acquisitions that have largely turned out to be duds.
“Just think of all the value that they have destroyed,” ISI Group analyst Brian Marshall said. “It has been a case of just horrible management.” (HuffingtonPost)
Hey Meg, you’ve go the money, why not buy some stock in your own company and show just how much you believe? Until she does, I don’t think you can buy the stock, it may continue to slide lower and lower.
The WSJ digs deeper into Hewlett-Packard’s supposed turn around and it doesn’t look good. The NY Times says we’ll know more on October 3, when HP holds its industry analyst day in San Francisco. Also, look out for board member Ralph Whitworth, the founder of Relational Investors, who’s an activist investor and might demand changes.