Sunday, September 12, 2010
Start in the garage
First stock to buy: Hewlett-Packard (NYSE: HPQ) HP is way trading at the bottom of its 52 week high, has a much lower multiple (10.7) compared to its competitors, and is in a lawsuit. What kind of fool would buy a stock in a lawsuit? No fool at all. A fool buys a stock after its up 120% for the year. Then it crashes and they are still a fool. Most people get out whenever there is bad news, but the reality of this lawsuit is, it will not affect company performance in the long term, and helps suppress the stocks value long enough for a real opportunity to exist. HP has been around the block, starting in a house garage, moving up to a giant multinational. Their former CEO (Mark Hurd) did not make and will not break this organization. Technologies evolve so fast, whatever secrets Hurd has (which he is being sued by HP for) will be old news in a few weeks. Get in now before everyone else gets their sense back.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment