HP Set to Roll Back
Rekha is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Even if you’re on a diet, it’s hard to resist yourself from grabbing your favorite pizza when you find its being sold at exceptionally low prices. The same logic applies to stocks as well. I mean, you can’t help but press the buy button on seeing stocks being traded at exceptionally low valuations, especially when you’re investing in technology stocks.
But wait! If the valuation was so low, I mean, it was all up for grabs, why didn’t anyone else notice it? This is the point when I doubt my investment. WAS IT GOOD AT ALL? That is the freakiest part of investing- we all follow what others do, just like a herd of cattle. We want value but then refuse to go for the stocks on seeing no one is buying it. This is exactly what’s happening with Hewlett Packard (NYSE: HPQ). However, it won’t be so for long.
Sentiment vs. Value
For many it is a trend to not bother about a particular stock that everyone ignores. They judge stocks by market sentiments and not on market value, which is where they go wrong as the `sentiment` and `value` are two separate terms. Here starts the falter.
What’s HP up to?
Although, not a high-flyer, recently Hewlett Packard (HP) is observed to be taking steps not only to shore it’s position against rivals such as Dell and Cisco but also possibly steal some shares away from top notches like Apple.
If that was not all, it has, with its long-time partner Microsoft (NASDAQ: MSFT) with which it shares a common enemy in Apple, been looking forward to the success of the Windows 8 launch as a means to dispel the exaggerated version of PC- death. It has also readied its Windows 8 tablet, as confirmed by a new commercial released by the tech giant.
The commercial, named “HP make it matter: 60 commercial,” covers several HP products and at the end of 55th second a person was shown holding a tablet-like device resembling the first generation iPad design. This device indeed appears very similar to the HP Slate 8 tablet whose designs got leaked a few months ago. The tablet, as the advertisement shows, has an aluminum-like back with a black strip representing an antenna.
To sum up
HP plans to re-enter the tablet segment with Windows 8 powered Slate 8 tablet for enterprises. The tablet is expected to house Intel (NASDAQ: INTC) Cedal Trail-W family Atom processor and will have a 10.1 inch touchscreen display. To add to this, the company is in the midst of a cost-cutting strategy that should help save a whopping $3 billion over the next five years or so. They plan to do so by opting to synchronize both its printing and PC ventures which together accounted for around $65 billion of the company’s revenue in the last few years. It is revved up to be back in action after a long time. By reducing its capital expenditure it becomes more nimble while improving its ability to innovate and produce products to attract new customers.
rekhamarwah has no positions in the stocks mentioned above. The Motley Fool owns shares of Intel and Microsoft. Motley Fool newsletter services recommend Intel and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.If you have questions about this post or the Fool’s blog network, click here for information.