Hewlett-Packard Looks Risky

After Wednesday's close, Hewlett-Packard (HPQ) reported its fiscal second quarter and, as expected, it was a mess. But an ugly set of results weren't enough to stop investors from bidding up the shares. The stock was up about 11% to $23.64 in Thursday morning trading. Since shares bottomed out in November, the stock has doubled. Apparently, investors are holding out hope the worst is over or that management will spin off the PC business. If so, the stock could fetch $30 per share.

The conference call sounded like the triage unit at an emergency room: personal computer sales down 20%, consumer revenue down 29%, total PC units down 21%, desktop units down 18%, notebooks down 24%, server revenue down 12%. And Business Critical Systems (BCS) are in critical condition, posting a revenue decline of 37%. Quick, call the Red Cross....233 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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