I saw that too and gave him credit for taking a page out of Obama's 2012 campaign:
"If you were successful, somebody along the line gave you some help. There was a great teacher somewhere in your life. Somebody helped to create this unbelievable American system that we have that allowed you to thrive. Somebody invested in roads and bridges. If you’ve got a business -- you didn’t build that. Somebody else made that happen. The Internet didn’t get invented on its own. Government research created the Internet so that all the companies could make money off the Internet.
"The point is, is that when we succeed, we succeed because of our individual initiative, but also because we do things together. There are some things, just like fighting fires, we don’t do on our own. I mean, imagine if everybody had their own fire service. That would be a hard way to organize fighting fires.
"So we say to ourselves, ever since the founding of this country, you know what, there are some things we do better together. That’s how we funded the G.I. Bill. That’s how we created the middle class. That’s how we built the Golden Gate Bridge or the Hoover Dam. That’s how we invented the Internet. That’s how we sent a man to the moon. We rise or fall together as one nation and as one people, and that’s the reason I’m running for President -- because I still believe in that idea. You’re not on your own, we’re in this together."
Hey, Obama has been president since Mar 2009 when S&P was at 666. The only thing that has changed this year is that GOP do-nothings had gained control of the entire legislature who had managed to do nothing on the infrastructure job bill but passed the bill to repeal Obamacare multiple times again.
As on presidential R&R, not so long ago, Obama was on the golf course one afternoon and the next day, we got Osama.
The option traders are back selling shares to Meg
s company buyback scheme again:
Pre-Market : 25.85 Down 1.62 (5.90%) 9:01AM EDT - Nasdaq Real Time Price
Correction, S&P is still hanging in there:
Dow high 18,351.36, closed 16,459.75 -10.3%
NAS high 5,231.94, closed at 4,706.04 -10.1%
SPX high 2,134.72, closed at 1,970.89 -7.7%
Early next week would be interesting with fresh page of calls and puts. Today, all those calls at or above $28 are worthless, highest volume was the $29 call at 4,021 and $28 puts at 3,754. Some one lost big when closed at $27.47.
by def. -10% from recent high, all time higns in this case.
It is days like this that the rich lost a bundle and wish they feel like ZEN monks: owns nothing, nothing to lose.
unclefulbert • 2 hours 20 minutes ago Remove
Layoff total has gone from 27K planned to 55K last Q and now 58K
We are nearing the end of our 2012 restructuring program, and 3,900 people exited in Q3. By the end of Q4, we expect to exceed our prior estimate of 55,000 people to exit the company by up to 5%, but will not exceed the forecasted GAAP-only charges
The stock was at $35 a quarter ago and $40 at start of the year. The huge range today is likely option trades and general market sentiment on global econ slow down due to BRIC and strong dollar.
While share prices often seemed random, but institutions have their reasons to trade at their price points.
The only good time for individuals to trade is when a stock was over-sold/bought when institutions throw the baby out with bath water. There is too much uncertainty on HP with the upcoming split as the mature cow - printer/ink is over milked. IBM's playbook worked for a few years and no more.
(Share was down pre-market to as low as $26.20 and now at $28.61, $29.43 HOD ... so very volatile to be a solid trend.)
Looks like Meg had delivered eps with her layoffs and share buybacks. Wall Street probably likes her attitude to do all possible to protect eps and their interest. Also, over 20 million shares are shorted per latest report. Most likely are covering them and take profit.
Buyers step in on Hewlett-Packard
Hewlett-Packard (HPQ +5.9%) results didn't blow anybody away and guidance was light (UBS and Mizuho cut price targets just after), but the stock was already lower by more than 30% this year, including about a 10% dip in the sessions leading up to last night's report.
Jim Cramer: There's a stock that isn't down, because it was down 20% going in and didn't disappoint. That's what I'm looking for."
CEO Meg Whitman on CNBC: "I don't think so," she responds, when asked if there's any hope for growth in PCs in the near term. "This is a volatile business, anything can happen," she answers when asked if she can guarantee no more negative surprises, particularly as they relate to cash flow/separation costs.
Our non-GAAP EPS primarily excludes pre-tax charges of $401 million for separation, $242 million for amortization of intangible assets, and additional non-cash charges of $136 million for an Enterprise Services data center impairment, and $114 million for a one-time pension adjustment.
We are nearing the end of our 2012 restructuring program, and 3,900 people exited in Q3. By the end of Q4, we expect to exceed our prior estimate of 55,000 people to exit the company by up to 5%, but will not exceed the forecasted GAAP-only charges.
never mind that playbook is proven a death poison in growth:
During the quarter, we repurchased $352 million of shares and paid $318 million in dividends, for a total capital returned to shareholders of $670 million.
And folks, what is the GAAP eps FY2015 again?
GAAP outlook for the full year is $1.87 to $1.93. A PE of 12 for a constant shrinking business without end in sight makes $25 price target generous.
Any reason why?
HP ended FQ3 with $17.4B in cash/investments, and $14.5B in long-term debt.
How about the short term debt of:
Notes payable and short-term borrowings of $11,034B and the extra 2.7B in AR/AP column?
and delay in paying vs receiving?
Accounts receivable ended the quarter at $12.8 billion, down 1 day year over year to 45 days. Accounts payable ended the quarter at $15.5 billion, up 7 days year over year to 72 days.
Beat eps by a hair but down 13% and with 15 of 16 QTR-ly sales decline is okay? Oh, please do ignore those quarterly recurring one time charges to measure executive compensation bonuses.
What a sham.
buying back shares, spinning off PC as Leo Potsticker said, dabbling in 3D printing, making excuses ..., other CEOs are growing their businesses:
Salesforce up 3.2% after FQ2 beat, solid guidance
Salesforce (NYSE:CRM) is guiding for FQ3 revenue of $1.69B-$1.7B (+22%-23% Y/Y) and EPS of $0.18-$0.19 vs. a consensus of $1.68B and $0.18. Annual on-balance-sheet deferred growth is expected to be in the mid-20s range.
FY16 (ends Jan. '16) guidance is for revenue of $6.6B-$6.625B (+23% Y/Y) and EPS of $0.70-$0.72 vs. a consensus of $6.55B and $0.71. Op. cash flow is expected to rise 24%-25% Y/Y.
The deferred revenue balance rose 29% Y/Y in FQ2 to $3.03B, after growing 31% in FQ1. The unbilled deferred revenue balance rose 24% to $6.2B, after growing 25% in FQ1.
Shrinking topline again and guiding light:
Hewlett-Packard Co. (HPQ) posted a 13% drop in earnings for the July quarter as the company reported its 15th quarterly revenue decline in the past 16 quarters.
H-P is set to split into two entities on Nov. 1, but the company continues to struggle as technology shifts toward mobile and cloud computing.
H-P's split will create very different companies: a cash-generating PC-and-printer behemoth that racked up $56 billion in revenue its most recent fiscal year, and a $55 billion server, services and software company that Chief Executive Meg Whitman has portrayed as more likely to grow through acquisitions.
For the fiscal year ending Oct. 31, the company narrowed its per-share earnings estimate to $3.59 to $3.65, from its previous estimate for per-share profit of between $3.53 and $3.73, excluding certain items.
Shares fell 3.8% to $26.30 in recent after-hours trading as revenue missed expectations.
For its third quarter, ended July 31, HP reported net income of $854 million, or 47 cents a share, down from $985 million, or 52 cents, a year earlier. Excluding certain items, per-share earnings fell to 88 cents from 89 cents. The company had guided for 83 cents to 87 cents a share.
Revenue decreased 8% to $25.3 billion. Excluding currency fluctuations and divested businesses, revenue dropped 2%. Analysts polled by Thomson Reuters were looking for $25.44 billion.