Cindy Shaw
Cindy Shaw
concerns cost credit cutting finally fully improving investors possibly putting realizing reflected rest
We think Hewlett-Packard will finally get credit for improving execution, possibly putting to rest concerns (H-P) is a cost-cutting story that is fully reflected in the stock. We think investors are finally realizing that cost cutting is only part of the story.
based citing conference cost credited cutting driver earnings execution finally growth headlines improving investors key questions realizing results wisdom
We have been citing improving execution as a key driver of earnings growth while conventional wisdom and headlines have credited cost cutting. Based on yesterday's results and questions on yesterday's conference call, we think investors are finally realizing that cost cutting is only part of the story.
company earnings less likely
When earnings are improving, a company is less likely to take a write-off.
earnings management quality tactic
We do not look favorably upon this tactic as we think it reduces quality of earnings and reduces management accountability and transparency.
bucks company earnings given itself outrageous price sell trying
We all know this company has been trying to sell itself for 65 bucks (a share) minimum, which was a pretty outrageous price given the earnings outlook.
earnings expenses generally investors legal moving view
We view this as a legal way of artificially boosting earnings by moving expenses to a place where investors generally won't see them.
future imply might negative
If they do write it off, that might imply they are negative about future profitability. To write it off would be contradictory.
hearing hoped
I was hearing of some of these problems, but I hoped things were more under control.
relief
Some of this is just a little relief rally,
guidance happy investors
I think investors will be happy with that guidance.
above account appears both business changes guidance imaging improvement largely margins offered pc percent printing quickly seeing today
It appears they have made fundamental, largely sustainable changes in the business. The guidance they offered today was above expectations, and we're seeing fundamental improvement in margins in this business pretty quickly under this new CEO. Margins in both the PC and imaging and printing businesses, which each account for 30 percent of revenue, were better than expected.
adapting changing existing focused instead longer model perfecting
We think Dell has been too focused on perfecting its existing model instead of adapting it to a changing environment. What was working for them before is no longer working.
evidence plan remain sidelines
We would remain on the sidelines pending evidence the plan is working.
companies gain good investment money return saving spending spent technology worst
Three-to-four years ago, in the worst of the downturn, the only money they spent was because got they got a really good return on investment and got it quickly. It was all about saving money. Now, companies are spending money on technology to become more competitive and to gain new capabilities.