Hewlett-Packard Compaq (HPQ)

[starbuxsux]

Good questions...
https://www.forbes.com/sites/johndorfman/2020/02/03/hp-progressive-value-momentum/#41483d1546c1

In 2015, Hewlett-Packard Co. split into Hewlett-Packard Enterprise (HPE) and HP (HPQ). The former, which provides software and services to large companies, is generally considered the sexy half. HP, which makes personal computers, printers and ink cartridges, is deemed dull.

But HP hasn’t been dull lately. Its stock is up 18% in the past three months. Despite the run-up, HP shares sell for only 10 times earnings, in a market where the average multiple is 26. It’s hard for me to love a company whose book value (corporate net worth) is negative. At HP, liabilities exceed assets by $1.19 billion, or 81 cents a share. Excluding intangibles such as goodwill, book value is negative $5.55 a share.

So, I don’t love this stock—but I like it, and not only because of the modest valuation. The company has been whittling down its debt. It pays dividends reliably, and currently offers a dividend yield near 3%.

Carl Icahn, a major shareholder, is agitating for a merger with Xerox, of which he is an even larger shareholder. He estimates the potential cost savings from a merger at $2 billion.