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Wednesday, November 4, 2015

Old Wine, New Bottles: Four Reasons You Should Avoid HP, Hewlett Packard Enterprise

Investment bankers and lawyers are no doubt guzzling Mouton Rothschild and wiping the caviar away from their lips with $100 bills.

And why not? They are the beneficiaries of what transpired November 2 on Wall Street when #HewlettPackard was divided into two roughly $50 billion (revenue) bottles — HP, a consumer PC and printer company; and #HewlettPackardEnterprise, a vendor of business computer servers, data storage, networking, software and consulting services.
No such celebration is in store for the 30,000 Hewlett Packard employees who will lose their jobs.

On their twin birthdays, HP’s shares popped 13% while Hewlett Packard Enterprise’s slumped 1.6%.

Meg Whitman, previously a Bain consultant and eBay CEO, spurred the split beginning in 2012. She reasoned that investors would be better off picking whether they wanted to invest in a company selling to consumers (HP) or to businesses (Hewlett Packard Enterprise — of which she is CEO).

http://www.forbes.com/sites/petercohan/2015/11/03/old-wine-new-bottles-4-reasons-you-should-avoid-hp-hewlett-packard-enterprises/

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