The Dow back over 9000 and up about 400points from its low of 3 weeks ago, butHP down to within about 3 points of its52-week low. And, down a shocking 30.4% from its recent May highs. Ouch!!!What"s going on? In my msg. 2194 I stated that I felt HP would have one moredisappointing quarter (ends July). But Idid feel that the price would rise asearnings announcement day approached inmid-August. This would follow the recentpattern of the past 2 years when investors, even though being disappointedmost of these quarters, were willing togive HP the benefit of the doubt and bidthe price up hoping for a good earningsnumber. But..... Has sentiment changedfollowing the latest disappointment inMay? Even though HP earnings fell justa few cents short again then, thereaction was especially severe. - Thestock was spanked for 12 points the dayafter the "pre-announcement". This wasmuch worse than usual. Did this mark aturnaround in sentiment from wishfuloptimism to "we won"t be fooled again"?If it did, we may not get the usualstock price rise prior to the Julyearnings release. I'm still hopeful forthe October quarter, but I'm hedging alittle by writing calls against some ofmy recent purchases. But I do feel weare close to the bottom just a littlebit lower at about 55. HP shares areselling for only 1.2 times estimated1998 sales for Pete's sake! Compare thisto other techs. Other views? Happy toread them, especially if you disagree.Thanks.
1.2 times 1998 sales means a HUGE financial risk, if profitability drops even a smidgeon. Maybe that's why the price is low? That 1.2 times "factor" applies to downside as well as profit! Warm rgds, Chap