Yes Hewlett-Packard, "Breaking Up Is Hard To Do." But, UBS analyst Steven Milunovich thinks it may be your only hope to get stock prices back up.
With a 44.8 percent loss for the year, NYSE:HPQ is struggling with management and failing division of their company.
The company's current position is maintaining "One HP", with the belief that the company is stronger together, rather than apart. Whether "prompted by activists or private equity", HP may need to reconsider that stance, according to UBS.
Milunovich explained that some parts of the business are dragging down the better ones. So by cutting those anchor ties, the company's stock may still be able to float. Milunovich estimated the value of the company's parts could be over $20 a share, versus the current $14.27.
Regardless if Hewlett-Packard decides to break up and sell off failing entities, MarketClub members aren't too worried. After all, they are sitting on a nice profit year-to-date using the Trade Triangle technology.
The short video above will demonstrate that with a $10K investment in HPQ share, MarketClub members walked away with an additional $4,464.62 in their pockets. Watch this video above.
Late last week Hewlett-Packard announced that it would no longer be making the very products that made them a household name since the explosion of home PCs. Then came the fire sale of their HP TouchPads for only $99.
I don't think anyone was surprised when HP stock prices took a nose dive, however, MarketClub members have been short this market since March.
The trend is your friend, and so are MarketClub's "Trade Triangles."
Susan Jackson and The MarketClub Team
P.S. To learn more about the club Where Members Profit, click here.
Every once in a while, I like to flip the TV channels and watch Jim Cramer on CNBC. It's not that I think that Jim Cramer is a spectacular trader, I just think he is a talented and amusing guy. The last time I tuned on the tube, CNBC's Jim Cramer was naming his top five picks to get you through these recessionary times.
So with pencil in hand, I quickly scribbled down his top five stock picks on a piece of paper and shoved it into my pocket. I actually forgot about Mr. Cramer's picks until today when I found this crumpled piece of paper with my handwriting on it. This paper listed the five stocks that Mr. Cramer picked on the close of business on January 8.