There’s nothing like being punished twice for something, which is sort of what happened to one big technology firm recently. On May 16, the company’s stock fell nearly 5% ahead of a scheduled earnings report, thanks to a leaked internal memo from the CEO forewarning of a tough third quarter. The CEO’s concerns officially became public the following day, and the stock resumed its slide for a total loss of about 10% since the initial leak. Sound familiar? I’m describing the latest of several recent setbacks suffered by the world’s No. 1 PC… Read More
There’s nothing like being punished twice for something, which is sort of what happened to one big technology firm recently. On May 16, the company’s stock fell nearly 5% ahead of a scheduled earnings report, thanks to a leaked internal memo from the CEO forewarning of a tough third quarter. The CEO’s concerns officially became public the following day, and the stock resumed its slide for a total loss of about 10% since the initial leak. Sound familiar? I’m describing the latest of several recent setbacks suffered by the world’s No. 1 PC maker, Hewlett-Packard Co (NYSE: HPQ). Two straight quarters of reduced full-year earnings guidance from management have also weighed on HP. The bad news hit before the stock even had a chance to fully recover from the scandal last August in which prior CEO Mark Hurd abruptly resigned amidst allegations of sexual harassment — a situation that led to the replacement of a third of HP’s board of directors. Considering these recent troubles and the fact that the PC business in general has been struggling with soft consumer demand, you might assume HP is a stock to avoid. You’d be… Read More