Break up value is twice current price or $25-28/share IMHO. Price now includes the printer and PC divisions for free essentially. True debt is $5 billion. BUY ! FIre BOD and put compentent BOD in place to run this. HPQ will move powerfully up once bidders come in (IBM Oracle) to buy this too cheap.
The $27.2 billion company, valued at more than $100 billion as recently as 2011, could boost a stock price languishing near a 10-year low under $14 to more than $20 by separating into two companies focused on consumers and business clients, UBS AG said. By jettisoning PCs and printers, Hewlett-Packard can reinvest that cash into the enterprise unit to enhance its software used for data centers, according to Topeka Capital.
Michael Thacker, a spokesman for Palo Alto, California- based Hewlett-Packard, said in an e-mailed statement that the company remains committed to its current corporate structure.
“HP has some of the most valuable franchises in the technology industry,” he said. “There are many advantages in one organization, including branding, go-to-market, supply chain, procurement scale, effective leverage of functional costs and collaborative R&D efforts. HP is committed to keeping our businesses and assets together. Our customers and partners tell us that’s what they want.”
Hewlett-Packard, a Silicon Valley pioneer founded in 1939 and now run by Chief Executive Officer Meg Whitman, remains one of the U.S. technology industry’s largest companies, producing $120.4 billion in revenue during the past four quarters. Only Apple Inc. (AAPL), at $156.5 billion, generated more, according to data compiled by Bloomberg. Hewlett-Packard also has the second- worst-performing stock in 2012 among technology companies in the Standard & Poor’s 500 Index, following a 46 percent plunge.