In my opinion, HP traded down so sharply today primarily because a true "recovery" for the company appears to be out into 2015 based on management's comments during the investor day. That is an eternity for most investors and especially for managers evaluated against a benchmark each quarter or year. I'm not sure what to make of HP and have spent the past year (thankfully) lowering the target price I set for a possible buy. I feel much like I did following RIMM during its long decline. Both seemed cheap on a trailing basis and even forward numbers were enticing. Successful value investors were involved. I don't think there is much left of HP's "brand" anymore and doubt anyone would pay a premium for a box with HP on it. I'd venture to say that the only premium pricing power that exists anymore in computers is associated with the glowing Apple logo.I like to follow the data and numbers and avoid emotions but when my gut tells me to pass, I don't argue. I owe a debt to Warren Buffett for the "no called strikes" analogy which has saved me more money than I've missed in lost opportunities over the years.
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