HP to Spin Off PCs, Eyes Software Purchase

[DCG]

So HP is producing more Touchpads to sell at a $200 loss? Brilliant.  ???

[Liberty]

So HP is producing more Touchpads to sell at a $200 loss? Brilliant.  ???

 

They're that desperate for anything positive to be said about them, apparently...  ;)

[Myth465]

I am pretty sure they had the parts already ordered and just want to clear WIP inventory for something. Also a little positive press never hurts...

[Myth465]

Here you go

 

http://tech.fortune.cnn.com/2011/08/31/why-would-hp-make-more-touchpads-to-sell-at-a-loss/?iid=HP_LN

[beerbaron]

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

 

[Rabbitisrich]

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.

[enoch01]

http://www.bloomberg.com/news/2011-09-21/hp-s-board-is-said-to-weigh-ousting-apotheker-after-less-than-year-as-ceo.html

 

Is it too much to hope for scrapping the Autonomy acquisition, and instead borrowing $10 billion to buy back stock instead?  Probably.

[Liberty]

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

[enoch01]

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

 

LOL - maybe they've found religion.  No doubt there's a few board members that are historically "hazardous to your wealth".

[Myth465]

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?

[txlaw]

So now Bloomberg TV is reporting that in addition to potentially ousting Apotheker, the Board is considering keeping the PSG unit. 

 

http://www.bloomberg.com/news/2011-09-21/hp-s-board-is-said-to-be-reconsidering-pc-spinoff-proposal-amid-ceo-debate.html

 

Unbelievable. 

[zarley]

It's official . . . Whitman to be CEO

 

http://money.cnn.com/2011/09/22/technology/hp_ceo_fired/?source=cnn_bin

 

What's happening at HP is a travesty.