HP Flip Flops Back to PCs

Hewlett Packard Company (NYSE:HPQ) has shelved plans to spin off its personal computers division.

CEO Meg Whitman is thus unwinding a large chunk of Leo Apotheker’s strategy for the company. Apparently the main reasons for retaining the division are the purchasing advantages opposite suppliers, one-time and recurring costs due to the spin-off and the risk of the spun entity competing with HP itself.

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“HP has been a comedy of errors, and selling a third of their revenue right now is probably not sound,” said Brian Marshall, an analyst at ISI Group in San Francisco. “This is obviously a pretty big reversal of the strategy Leo put into place.”

Whitman is running the company along with executive chairman, Ray Lane. While she is responsible for the hardware and corporate functions, Lane runs the software and technology services.

Whitman also proposes to return the company’s focus on table PCs. “The market was created by Apple,” she says. “That doesn’t mean there couldn’t be a strong No. 2 player.”

Here is how Hewlett Packard’s news is affecting the top PC stocks:

  • Hewlett-Packard Company(NYSE:HPQ): The shares traded at $27.91, up $0.82, or 3.03%, on the day. Its market capitalization is $55.46 billion. They have traded in a 52-week range of $21.50 to $49.39. Volume today was 4,914,490 shares versus a 3-month average volume of 29,001,600 shares. The company’s trailing P/E is 6.55, while trailing earnings are $4.26 per share. The company pays a dividend of $0.48 per share for a dividend yield of 1.90%. About the company: Hewlett-Packard Company provides imaging and printing systems, computing systems, and information technology services for business and home. The Company’s products include laser and inkjet printers, scanners, copiers and faxes, personal computers, workstations, storage solutions, and other computing and printing systems. Hewlett-Packard sells its products worldwide.
  • Dell Inc.(NASDAQ:DELL): The shares traded at $16.18, down $0.14, or 0.86%, on the day. Its market capitalization is $29.52 billion. They have traded in a 52-week range of $12.99 to $17.60. Volume today was 1,215,343 shares versus a 3-month average volume of 28,154,100 shares. The company’s trailing P/E is 8.64, while trailing earnings are $1.87 per share. About the company: Dell Inc. offers a wide range of computers and related products. The Company sells personal computers, servers and networking products, storage systems, mobility products, software and peripherals, and services. Dell serves consumers and businesses in the Americas, Europe, the Middle East, Africa, and the Asia Pacific region.
  • Apple Inc.(NASDAQ:AAPL): The shares traded at $403.88, down $0.81, or 0.2%, on the day. Its market capitalization is $375.32 billion. They have traded in a 52-week range of $297.76 to $426.70. Volume today was 1,292,929 shares versus a 3-month average volume of 22,964,900 shares. The company’s trailing P/E is 14.59, while trailing earnings are $27.68 per share. About the company: Apple Inc. designs, manufactures, and markets personal computers and related personal computing and mobile communication devices along with a variety of related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, third-party wholesalers, and resellers.

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