Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next
Author: mungofitch Big gold star, 5000 posts Top Favorite Fools Top Recommended Fools Feste Award Winner! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 14913  
Subject: Re: HP Date: 11/21/2012 6:52 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 3
With so many attractive alternatives among IT companies which face short-term,
business cycle issues and/or fiscal cliff panic, why bother with HP's
seemingly endless list of self-inflicted wounds which might take years to fix.

Answer: entertainment value!
At 0.1% of my portfolio I can afford to take a flutter.
I went for $13 call options at $1.45. By fat the most likely outcome is that I lose $145.
If they go back to their 52 week high I make $1555. As I say, pure entertainment value.
Plus, it's faintly possible that they will have a very different reputation in a year.
Maybe flattish revenue but rising earnings & share price and a secure looking dividend.
Weirder stuff has happened.

With hindsight the main problem with the acquisition was clear:
you can't successfully take over a company called "autonomy".

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next


Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Berkshire Hathaway

Buffett's Biggest Mistake
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.