Category Archives: $HPQ

Market sell off Savage – quality stocks at lower prices…UPDATE…

Revisiting some the quality stocks tweeted out at the end of August, following a savage sell off.The market is punishing stocks whose guidance is weak – $SAVE, $GPRO and NXPI…but have rewarded big cap tech stocks like $GOOG, $MSFT.
Can FaceBook join the big tech party or will it sell off following its big run this month?

Here is an update on these great companies mentioned on August 23rd:

Biotech:
$GILD (Gilead) FV = 115 vs 109 – hold out for 115.

Financials:
$MS (Morgan Stanley) FV= 39 vs 34 1.75% 14% Cheap
Reported a terrible quarter, but hold  –  stock is back to 33.4 wait another quarter!

$JPM (JP Morgan) FV=72 vs 64 2.77% 12% Cheap
Prospect for lower rates for longer has not hurt the stock – HOLD.

$HSBC (HSBC) FV=625 vs 533 5.9% 18% Cheap
Weak earnings in Barclays and a potential cash call in Standard Chartered, has not hurt the stock that much at 510. Keep a stop of 470.

Social Media/Internet Retail
$FB FaceBook – look to buy around $80 (30% 5Y Growth)
Results next week – if you got in the low 80’s take profit. 2Centview sold some of the core at 104.

$AAPL (Apple) FV = 120 vs 105
Take profit some profit here above 120.

$TWTR (Twitter) FV=28 vs 26
Terrible quarter – but stock holding up – FV Much lower as company lowers growth expectations. Exit for flat or hold if you believe in Dorsey.

$YHOO (Yahoo FV = 36 vs 33 (vs 68.2 in BABA stock)
Take profit above 36.

$BABA FV= 88 vs 68
Take some profit here at 84.

Chips
$SWKS (Skyworks) FV=92 vs 79 14% Cheap
Stock lower following NXPI results – but FV Unchanged. HOLD.

3D Printing
$HPQ (hewlett packard) FV= 36 vs 27.5 2.56% Yield – Separation could add $5 – look at EBAY/Paypal!
HOLD. FV Unchanged.

$SSYS (stratasys) FV = 25 (if you include $6 of cash) vs 28
FV lower. Exit here at $26 unless you believe 3D printing is potential growth story.

Solar
$SPWR FV=26 vs 21.7
Take some profit here at $26. Keep a core if you believe in Solar Power long term.

Oil
$BP FV=470 vs 357 yield 6.8%
FV= 400 now – lower as oil prices expect to stay lower for longer. Hold for the YIELD or take profit if you got in at 357.
$PFC (PetroFac) FV = 930 vs 789 yield = 5%
Stock did get to 940 – where 2CentView took some profit – holding a core.

Insurance
$AV. (Aviva) FV=580 vs 482 yield = 4.4%
FV Unchanged – hold for the yield.
$AIG FV = 65 vs 60 1.88% Yield
Take profit at $65 (now 63.53)

Airlines:
$EZJ (easyJet) FV= 1950 vs 1624 3.4% Yield
HOLD.
$SAVE FV = $56 vs 55
Terrible run sees the stock trade down to $35. FV $10 LOWER. 2CentView has exited the core position.
$AAL FV=$55 vs 40
HOLD. Nice rally to $46.

Market sell off Savage – but now is to time to look for quality stocks at lower prices…

They say that all bull markets have the occasional 10% correction and last week’s Friday’s was brutal – is this a correction in a bull market or the start of a bear market?

One thing for sure, China growth is slowing – probably to around 5% – or even lower and this is what is driving stocks lower – first the commodity crash – and then companies with growth to China – which is almost every company – hence broad sell off.

The fall out of this significant market event is there could be some more selling over the coming weeks with a possibility of the SP500 hitting 1900.

2CentView is that it is not an overall bear market – the US and UK Economy are buoyant – and with interest rates and oil prices set to remain low for some time yet, this should spur growth as consumers spend. So the broader market may correct a 3-5% more then rally as the lower growth in china is fully priced in.

Mark your stocks from 1 to 3 – 1 being those you really want to keep forever, and 3 those you can sell to raise cash and buy companies you really want which were too expensive before – 2CentView has sold FitBit and Man Group.
2CentView strategy is always to take some profits when stocks hit your target – reducing the overall cost basis making to hard to lose money in volatile markets – and it is times like now when you are glad you did!

Here are some great companies to keep an eye on

Biotech:
$GILD (Gilead) FV = 118 vs 105 1.6% Yield 11% Cheap

Financials:
$MS (Morgan Stanley) FV= 39 vs 34 1.75% 14% Cheap
$JPM (JP Morgan) FV=72 vs 64 2.77% 12% Cheap
$HSBC (HSBC) FV=625 vs 533 5.9% 18% Cheap

Social Media/Internet Retail
$FB FaceBook – look to buy around $80 (30% 5Y Growth)
$AAPL (Apple) FV = 120 vs 105
$TWTR (Twitter) FV=40 vs 26
$YHOO (Yahoo FV = 36 vs 33 (vs 68.2 in BABA stock)
$BABA FV= 88 vs 68

Chips
$SWKS (Skyworks) FV=92 vs 79 14% Cheap

3D Printing
$HPQ (hewlett packard) FV= 36 vs 27.5 2.56% Yield – Separation could add $5 – look at EBAY/Paypal!
$SSYS (stratasys) FV = 33 (if you include $6 of cash) vs 28

Solar
$SPWR FV=26 vs 21.7

Oil
$BP FV=470 vs 357 yield 6.8%
$PFC (PetroFac) FV = 930 vs 789 yield = 5%

Insurance
$AV. (Aviva) FV=580 vs 482 yield = 4.4%
$AIG FV = 65 vs 60 1.88% Yield

Airlines:
$EZJ (easyJet) FV= 1950 vs 1624 3.4% Yield
$SAVE FV = $66 vs 55
$AAL FV=$55 vs 40

$HPQ FV Update following earnings – stick with the trade recommended on Mar 28th…

Tweeted back on March 28th , $HPQ was a good buy at 31.5 with FV+35 + 2% Dividend yield + $5 further potential upside from the breakup and 3DPrinting.

Meg Whitman came on CNBC and gave an update on how the break up was progressing, and although pc sales remain soft, she remains bullish on 3D Printing, the additional value the break up will bring and the huge -not surprisingly – demand for cyber security solutions and their link up with $FEYE (fireeye). $FEYE surged to above $45 on that.

Meg Whitman is a top CEO. Stick with the trade outlined on Mar 28th – look to take profit above 37.

2CentView FV now =36 but there is additional value…in both the 3D printing business and the eventual break up of the company of about $5.

$HPQ(Hewlett Packard) should you consider buying following 6% sell of this week..there is more value..

$HPQ fell 6% this week following a rout in PC related stocks.

This could represent a buying opportunity.
2CentVew FV=35 vs 31.5 so 10% upside to fair value – but there is additional value…in both the 3D printing business and the eventual break up of the company.

This value could between 3 to 7$ – so assuming $5 mid, HPQ stock could rise to $40 by the end of the year – a potential 25% upside with 2% Dividend Yield.

What has happened to the hype around 3D Printing? Stocks like 3D systems and Stratays have collapsed … 2CentView has always been the best way to play 3D printing is via $HPQ.
If you believe 3D printing is a real technology buy $HPQ – and you want to get exposure to 3D while the hype has disippated (best time to buy!), and want some value from the impending break up and get paid 2% dividend yield while waiting.

Trade: Buy $HPQ here at 31.5 – take profit target $37.5 stop $28.
Meg Whitman is a top CEO.

2CentView sold it’s core position in $HPQ in 2014 and does not plan to buy $HPQ as this time.

NASDAQ Closes above 5k! Bail out or Buy more? 2CentView …….

Can the NASDAQ power on from here or is this Y2K all over again?

$CSCO traded on a p/e of 100x in 2000 and there was talk it could become the first trillion $ company. Today, it has a market cap of 145bn a p/e of 13 and a growth rate of just 5% over 5 years – so not exactly the same as Y2K.
The Biotech sector is showing some signs of a bubble brewing up – but this is still not on the scale of bubble in 2000.

Mobile Social and BioTech stocks have done well over the past 18 months – PC related stocks have performed poorly – and will probably remain that way as there is no growth in PC – look at $INTC and $HPQ recently…

There are very few bargains left in these hot sectors – the last one $SWKS (Skyworks) which was an incredibly cheap stock at $60 when 2CentView tweeted the name back in November 2014, is now $102!

Value names in various Sectors:

PC’s
Keep away from PC Stocks for now – if you do want to buy, $MU is the cheapest.
$MU FV = 38
$HPQ FV = 35 Yield 2%
$INTC FV = 29 Yield 3%

Mobile/Social/Internet of things/Wearables
$GOOG FV=600 – was a great opportunity to buy when below $510
$MSFT FV= 45 – if you think they can move out of their depdendence on the PC
$CSCO FV=30 – buy some for the yield of 3% and potential in the internet of things – implied growth still very low

Internet Software and Services
$BABA FV=120 – includes $20 cash – implied growth 25% vs 45% on $AMZN
$Z FV=108 – Spencer RasCoff is a great young CEO
$YELP FV=70

Biotech/Pharma
$GILD FV = 109 also pays dividend! HepC is competition is heating up though!
$JAZZ FV=189 – could be the next pharma take out!

Solar
$CSIQ FV=60 [see earlier tweet on this name ]

2CentView has core positions in $AAPL, $GOOG, $FB [3 best tech companies in the world!], also $TWTR, $ISIS, $CELG , $GILD and $FEYE

2CentView FVs are calculated using a proprietary earnings based model which has been calibrated to determine a fair vlue stock price today. It is based on consensus analyst predictions of future earnings – these are predictions only and may not play out in the real world. It is designed to identify mispricing between the stock price and future earnings potential of the company. The model has helped 2CentView realise a 35% annual gain over the past 2 years.

$HPQ: Earnings due tomorrow, , 3D printing finally announced..FV update

$HPQ announced its 3D printer earlier this month and judging from the reaction of other 3D stocks, and the fact the $HPQ FV is largely unchanged, the new printer will not have a significant impact on revenues nor the overall 3D Printing market.

2Centview has been the low risk to play to get exposure to 3D is via $HPQ which is up 35% on the year whereas $DDD is down 60%.

FV = 38.5, Yield 1.75%

the Impending break up of $HPQ could add another $3-$5 and the right acquisition in the 3D Space e.g. 3D Systems could add another $3 – so $HPQ could be worth as much $45.

Hold as a core position if you are long $HPQ and buy on weakness below $35.

$HPQ(Hewlett Packard) – to split into 2 companies – Enterprise and PC/Printers

$HPQ after hitting the $38 2CentView FV pulled back to 34.5 – now up to 36.87 following the news of a split.

Any split should create significantly more shareholder value than today’s rise – so hold if you have a core position in $HPQ and look for at $42-45 price objective over 12 months following the split.

2CentView has a core position in $HPQ.

$HPQ – approaching take profit target of 37 post results…

I guess when finally show some revenue growth after 11 Flat quarters, investors will take notice, even if all parts of the business did not come through as strong as the PC sales

Keep a core position, as the turnaround still has more to go and the prospect of entering the 3D printing could add 2-3$ to the stock if they can make an acquisition at the right price – HPQ have made some terrible acquisitions in the past vastly overpaying.

The yield is still an attractive 1.75%.
FV=$38

$HPQ (Hewlett Packard) results out – PC Sales grew by…

12% – better than the 7% forecast, but other areas of the businesses – mainly printing disappoint.Stock could be under pressure tomorrow if conf call does’nt go well … on the call now but the streaming app – earningscast seems to be broken!

They need to make a 3D printing acquisition while the market caps’ of the 3D Companies are still low – $SSYS is best of breed

FV=38

$HPQ(Hewlett Packard) – results tomorrow…FV Update..

FV now 38 from 37, take profit target 37.

With CSCO reporting a strong quarter and IT Spending expected to grow 4% in May, expect some decent numbers from HPQ tomorrow.
Hopefully the conference call will include some news on the plan to enter the 3D printing market in the Autumn, which would add 2-3$ on top of the target price. The 3D printing business is picking up if recent results from Stratasys is anything to go by.

Stick with HPQ through the numbers, take profit target = 37.