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Sunday, June 10, 2012 12:56:21 PM
June 9, 2012
http://seekingalpha.com/article/648241-massive-insider-buying-could-mark-bottom-for-hewlett-packard?source=email_tech_daily&ifp=0
Like most investors I have avoided two tech behemoths going through tough times right now, Hewlett-Packard (HPQ) and Dell (DELL), as they seemed like value traps with no compelling reason to buy either. However, recently insiders have bought hundreds of millions of dollars of new shares over at HPQ, which is enough activity to make any investor sit up and notice. The stock also seems at near-term technical support. Given this and rock bottom valuations, I think it worth a hard look by value investors.
"Hewlett-Packard Company provide products, technologies, software, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide." (Business description from Yahoo Finance)
7 Reasons there is huge value in HPQ at $22 a share:
Directors have bought over $400mm in new shares over the last few months.
The stock is selling at the very bottom of its five year valuation range based on P/E, P/B, P/S and P/CF.
The stock is selling for five times forward earnings, a sharp discount to its five year average (10.1)
Hewlett-Packard is dirt cheap at under four times operating cash flow and just 6% over book value.
The stock has beat earnings estimates for the last three quarters and analysts expect EPS to rise 8% from FY2012 to FY2013.
The 22 analysts that cover the stock have a median price target of $27 a share on HPQ
The stock has bounced from these levels previously (see chart)
![](http://investorshub.advfn.com/uimage/uploads/2012/6/10/kaqif498952-13392469793285472-Bret-Jensen.jpg)
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in HPQ over the next 72 hours.
Recent HPQ News
- HP Inc. Appoints Karen Parkhill as Chief Financial Officer • GlobeNewswire Inc. • 06/26/2024 01:00:02 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 08:31:41 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 06/18/2024 08:30:27 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/17/2024 08:16:26 PM
- HP Inc. Names Fama Francisco to Board of Directors • GlobeNewswire Inc. • 06/17/2024 07:00:27 PM
- HP Study: Business and government leaders believe technology is key to expanding economic opportunity • GlobeNewswire Inc. • 06/12/2024 10:00:00 AM
- HP Inc. Declares Dividend • GlobeNewswire Inc. • 06/11/2024 08:15:27 PM
- Form 11-K - Annual report of employee stock purchase, savings and similar plans • Edgar (US Regulatory) • 06/06/2024 08:55:11 PM
- Form SD - Specialized disclosure report • Edgar (US Regulatory) • 05/30/2024 08:07:40 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/29/2024 08:17:14 PM
- HP Inc. Reports Fiscal 2024 Second Quarter Results • GlobeNewswire Inc. • 05/29/2024 08:15:04 PM
- US Index Futures Drop Amid Rising Treasury Yields and Inflation Concerns, Oil Prices Increase • IH Market News • 05/29/2024 11:28:38 AM
- HP Unlocks New Era of AI Experiences Powering Work and Creation • GlobeNewswire Inc. • 05/20/2024 06:00:00 PM
- HP Catches Cybercriminals ‘Cat-Phishing’ Users • GlobeNewswire Inc. • 05/16/2024 07:10:00 AM
- HP Inc. Declares Dividend • GlobeNewswire Inc. • 05/15/2024 09:00:08 PM
- HP Inc. to Announce Second Quarter Fiscal 2024 Earnings on May 29, 2024 • GlobeNewswire Inc. • 05/08/2024 08:15:03 PM
- HP's Next Gen Antivirus Given Perfect Score In Independent Test • GlobeNewswire Inc. • 04/25/2024 01:11:30 PM
- Ferrari And HP Announce a Title Partnership • GlobeNewswire Inc. • 04/24/2024 12:34:18 PM
- United Shares Surge 5.3% in Q1 2024 Earnings Beat; Take-Two Cuts 5% of Workforce, and More News • IH Market News • 04/17/2024 10:57:39 AM
- HP Unveils Canadian Cohort for 2024 Digital Equity Accelerator Program • GlobeNewswire Inc. • 04/16/2024 01:00:45 PM
- HP Announces 2024 Digital Equity Accelerator Cohort • GlobeNewswire Inc. • 04/16/2024 01:00:03 PM
- Paramount Global Board Shrinks, Morgan Stanley Faces Regulatory Probe, and More News • IH Market News • 04/12/2024 11:05:29 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/11/2024 08:46:37 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/07/2024 10:23:31 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/07/2024 10:18:01 PM
Mass Megawatts Announces $220,500 Debt Cancellation Agreement to Improve Financing and Sales of a New Product to be Announced on July 11 • MMMW • Jun 28, 2024 7:30 AM
VAYK Exited Caribbean Investments for $320,000 Profit • VAYK • Jun 27, 2024 9:00 AM
North Bay Resources Announces Successful Flotation Cell Test at Bishop Gold Mill, Inyo County, California • NBRI • Jun 27, 2024 9:00 AM
Branded Legacy, Inc. and Hemp Emu Announce Strategic Partnership to Enhance CBD Product Manufacturing • BLEG • Jun 27, 2024 8:30 AM
POET Wins "Best Optical AI Solution" in 2024 AI Breakthrough Awards Program • POET • Jun 26, 2024 10:09 AM
HealthLynked Promotes Bill Crupi to Chief Operating Officer • HLYK • Jun 26, 2024 8:00 AM