March Market Madness: Hewlett-Packard (HPQ)

March 15, 2011 8:30 am

As we mentioned earlier, this month we are going to be looking at the stocks that make up the DJIA. . Next up Hewlett Packard (HPQ)

With all of the hub-bub about cloud computing and global sales of servers, HP seems to be following the path of Dell. That will not be good.

The new CEO, Leo Apotheker is planning on releasing the “plan” and “strategy” for the future. Now, they are suddenly increasing the dividend by 50% as the stock sags. Seems like a play to undermine the shorts as they have been piling in of late.

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Even so, the shares have a long way to get back to a position that would provide a solid entry point. Our analysis shows that the fundamentals are strong, but the air has been drawn out of the HP balloon. There is just nothing exciting to look forward to over the near term.

Our “Sell” rating appears to be very well aligned with the technical trend. Both fundamentals and technical matter, but in the end, the price is the final truth.

HPQ 20110314

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