Wednesday 3 October 2012

HPQ - crashes

Hewlett-Packard (HPQ) crashed almost 13% lower today to close @ $14.92. The market does not like the CEO, and it most definitely does not like outlook for either the short, mid, or long term. HPQ remains lacking direction, in a technological corporate world that is filled with piranha.


HPQ, daily



Summary

We now have one of the secondary targets being hit.. $15. With the close <15, I certainly believe $10 is going to also be hit, probably within the next 2 months. If the main indexes can manage to rally into Christmas though - with SP'1550, then I'd delay that $10 target until late Spring 2013.


So...what now for HPQ?

I certainly would never suggest the company is in danger of going under. No, that won't happen, but as I've noted a few times over the past few months, it is entirely lacking in leadership (the CEO is entirely incompetent, and the market KNOWS it!).

Given a few years, and a decent young CEO who understands how to operate a smartphone and how to program a toaster, I'd guess HPQ will be a great long term recovery stock.

..that time is certainly not yet though!

First, lets see HPQ cycle lower to hit the big $10.

*there was one analyst on clown network'1 today, touting HPQ @ $7. I could envision that, but that certainly seems like something to see in the latter half of 2013.