Jump to content

HP to Spin Off PCs, Eyes Software Purchase


Liberty

Recommended Posts

  • Replies 86
  • Created
  • Last Reply

Top Posters In This Topic

It seems seems to make sense. Take the following scenario HPQ sell Tablet to BBY, BBY sell tablet to consumer. Before liquidation price is 500$ so what was the cost of those tablets?

 

BBY gross margin = 33%

HPQ gross margin = 30%

 

500$/(1.33*1.3)=289$ which is the cost HPQ would buy the tablets from their contract manufacturers. Less S&H 2$ = 287$, assembly 25$ = 262$.

 

So 262$ is about the parts costs.

 

Scenario 1: Liquidate tablet at 100$

HPQ Sell price to BBY: 75$

Losses = 289-75 = 214$

 

Scenario 2: Throw away all parts

Losses = 262$

 

Scenario 1 makes more sense.

 

BeerBaron

 

Link to comment
Share on other sites

  • 2 weeks later...

HP just released its latest 10-Q. The current market cap doesn't apply much value to old cash cows like imaging and printing, and continued strong results from enterprise servers/storage/networking. Is there an Apotheker discount, or simply too much attention devoted to declining consumer computer pricing?

 

Imaging and printing doesn't get much media attention considering its profits relative to the market cap.

Link to comment
Share on other sites

  • 2 weeks later...

What a mess. I wonder what happened.. It's the same board that just approved Appoteker's (sp?) big plans, after all..

 

Big mistake. Isnt he just executing what they have already greenlighted. HP is turning into Yahoo, and is being pushed around by a cranky Mr Market. If I was a CEO, would I really go work for them?

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now



×
×
  • Create New...