Thoughts on HPQ mid to long term?

Submitted by One-Heart3765 t3_zyhfah in wallstreetbets

I personally am bullish on it for a few reasons. 1.Low Multiple: HP currently has a pr multiple of 8.8 which is crazy low even for a company with flat earnings. 2.Heavy buybacks: HP currently uses much of its Cashflow to heavily reduce share count at a rate of nearly 14% YOY 3.Institutional ownership: Berkshire Hathaway now owns a large percent of firm at 12.3% which they rarely sell.

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VisualMod t1_j25u2yw wrote

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VisualMod t1_j25u3na wrote

>1. I agree that HP's current price-to-earnings ratio is relatively low, which could indicate that the stock is undervalued. 2. I also think that the company's heavy buybacks are a positive sign, as it shows they are confident in their own future prospects. 3. Finally, Berkshire Hathaway's large ownership stake indicates to me that Warren Buffett and his team believe HP is a sound investment worth holding onto for the long term.

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0x11C3P t1_j25v61l wrote

For a dividend play? Sure. The company doesn't grow. Share buybacks YoY just means they gave up trying to grow and the only way to increase stock price is to buy back shares.

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nateccs t1_j25xlpz wrote

dead fish. 4 years ago it was going for 15.25. 4 year high is 17.76. 4 year low is 7.43. today its 15.92. do you really think its going to go up more? i'd short the shit out of it.

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Going to edit this, Istill don't like HPQ but not nearly as much as I dont like HPE. I don't think now is the time to invest in it based on that were in a down trend. maybe after the next lower low.

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NyackAP t1_j261vlc wrote

Their printer business is dying (nobody prints things anymore). They do have an active server business.

Do I think they will be around if 5 years, yes. Do I think they will be significantly more valuable, probably not. Do I think their stock will go up in the next 6 months, yes... I just added it to my watch list and will buy a few shares on their next down day.

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nateccs t1_j26602x wrote

Replying to [deleted] (#1,161,102)

Berkshire got fucked on their HPQ buy. they bought $4.2 billion April 6 around $35 a share. Its $27 now so as far as that trade is considered, Warren belongs here.

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blaked_baller t1_j26hbmh wrote

Replying to [deleted] (#1,161,102)

A good investment for brk =/= good investment for us small guys. They can only buy bigger companies due to their sheer size and cash. and we know papa buffet loves his dividends + share buybacks.

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