HPQ - still lacking vision

Hewlett Packard (HPQ) posted reasonable earnings for Q2 at the close yesterday. Earnings were broadly in-line with market expectations, sales were a touch light, but nothing that could be labelled bad. However, the company still has long term structural issues, in what remains a very challenging sector.


HPQ, daily

Summary

Lets be clear, Q2 earnings data were okay, it certainly wasn't a terrible quarter.

However, the long term target of $15 looks very viable sometime in Q4 of this year. Even if the main market holds together, the trend remains weak, and the recent low of $17.50 really should not be too difficult to take out.

The lowly - and huge psychological level, of $10 looks only viable if the SP' breaks under 1100, which right now seems very unlikely this year.

HPQ remains a good in many respects, its certainly not going to disappear, but its likely to struggle across the next few years.