The Pennystock Article- HPQ Hewlett-packard


Hewlett-Packard (HPQ: Charts, News, Offers) has been looming large in the headlines this week, following CEO Mark Hurd’s abrupt resignation last Friday after a sexual harassment probe into his relationship with an employee revealed falsified expense accounts concealing an extramarital affair. Hurd had been instrumental in the restructuring and rebirth of HP, cutting costs and increasing margins drastically, doubling the share price in the past five years. In his absence, CFO Catyhie Lesjak has taken the reins as interim CEO until a suitable replacement can be found. Investors remain divided on the future of HP without Mark Hurd. Some have likened the removal of Hurd to Apple’s nearly fatal decision to oust Steve Jobs back in 1985, while others believe that HP is still on track to fulfill its full year revenue forecast. Indeed, upon the announcement of Hurd’s departure, HP unexpectedly revised its full-year EPS outlook from 4.45-4.50 to 4.49-4.51, in a thinly veiled attempt to pacify shareholders. As if the Hurd scandal wasn’t enough, new allegations of bribery in Russia totaling 10.9 million to secure a contract have further sullied the company’s reputation. Is there any hope for this once bright tech beacon amid a PR nightmare?

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Stock Analysis
For many years prior to Hurd’s ascension, HP was tangled in a web of low margins and over-diversification. Since 2005, Hurd increased margins from 4% to nearly 9% at one point. He followed IBM’s (IBM: Charts, News, Offers) example and shifted much of its focus towards higher margin software and IT services, which now make up 31% of HP’s revenue model. 68% of HP’s gross revenue still comes from hardware – 54% from personal computers and imaging/printing devices, and 14% from enterprise storage and servers. Its recent 13.9 billion, 3-year acquisition of EDS (Electronic Data Systems) is expected to boost its storage/servers division significantly, making it the second largest corporate storage provider after IBM. Also worth noting is the recent $1 billion acquisition of struggling smartphone maker Palm for a 23% premium, despite the company failing to turn a profit since 2008. This shows HP’s desperation to enter the lucrative smartphone market, even if it means starting late and handicapped. Of these aforementioned divisions, the imaging division, which includes printers, scanners and print cartridges, is the most profitable. The imaging hardware is sold at either a loss or a very thin margin, while the replacement cartridges are sold at 50% margin, and provide HP with its cash cow, earning over 50% of the company’s net profits.

HP’s decision to enter the smartphone arena with an already fragmented business model may prove to be distracting, unnecessary and costly. Critics have already pointed out that the Palm brand is practically worthless and quickly becoming a footnote in the fast moving mobile world. Others have predicted that HP would strip the Palm name and mine its technology in order to release a new HP branded smartphone quickly. HP had previously used Windows Mobile in its previously unsuccessful iPaq handsets, and now also owns Palm’s WebOS. Neither would be a viable choice to enter a market dominated by Apple’s (AAPL: Charts, News, Offers) iPhone, Research in Motion’s (RIMM: Charts, News, Offers) Blackberry, and a slew of Google (GOOG: Charts, News, Offers) Android powered devices which include HTC, Samsung, Motorola and Sony Ericcson. It would take a gentle hand to guide HP into the smartphone game without incurring massive initial losses and decrease the margins that Hurd had so shrewdly increased.

Due to the fact that HP’s focus is so broad, there are multiple competitors on several fronts, which would take skillful maneuvering, on the level of Mark Hurd, to counter. On the personal and corporate computer front, Dell (DELL: Charts, News, Offers) is its closest competitor, though it has lower net profit margins (2%) than HP (7%). On the IT services and software front, IBM is the biggest threat, with significantly higher net margins (14%) than HP. However, HP’s profit engine is its imaging division, where it faces a whole different group of rivals – Lexmark, Canon, Samsung, Xerox and Epson. Against these companies, HP holds a commanding 45% of the market. There is, however, a new threat of office mega-stores such as Office Depot (ODP: Charts, News, Offers) and Staples (SPLS: Charts, News, Offers) selling their own generic brand print cartridges that are compatible with HP devices. This is a serious threat to HP as much of its bottom line depends on the sale of print cartridges.

As HP’s share price sinks, there are many purely technical factors that make it an attractive long-term investment. The trailing P/E is only 11.4 and the forward P/E is 8.06. The PEG ratio has fallen to .98, and it rests right above the 52-week low of 39.95. There is also a small 0.08 quarterly dividend to boot. Hewlett Packard is a strong brand with a healthy heart generating plenty of cash, and it won’t go under anytime soon.

The new CEO will have to be as focused as Hurd was on maximizing HP’s comparatively small margins, cutting costs further, and streamlining HP’s fragmented business model and insuring the absorption of EDS and Palm go smoothly. Many analysts believe the stock could go either way at this moment, and with pessimistic uncertainty thick in the air regarding Hurd’s replacement and the outcome of the current DOJ bribery probe, it may be prudent to step back and set HPQ on a watchlist for now and see what happens.

Other News About HPQ
Hewlett-Packard directors sued over CEO Hurd exit
US Department of Justice Asks Hewlett-Packard Co. to Provide Internal Records for Bribery Investigation
Hewlett-Packard Dropped To A New Low For The Year

Buy Penny Stocks Without Risk

Buy Penny Stocks Without Risk

Learn how to buy penny stocks without losing your shirt in the process.

Since writing about trading penny stocks online over at my blog, I received many emails about the topic and it appears to have generated a fair deal of interest. Folk have been trading stocks online since the first days of the web, and today it is a straightforward matter for anyone that decides they need to become involved to start online trading.

Check the bottom of this article if you would like to see an automated penny stock trading robot making a killing on live video.

However, there are many things you should be conscious of before choosing to start to buy penny stocks, not least being that it’s a bet, and this applies with no regard for your understanding or experience.

You want to have some money to invest and it should be cash that you can affors to lose.

Keep in mind the worst case eventuality – i.e. Fair alert if you do not wish to read any more. If the idea of an exciting dangerous investment system appeals to you, trading penny stocks might be the adrenalin fix you are looking for. It’s pretty easy to start, but success or failure are similarly possible results. Firstly, penny stocks are often outlined as stocks trading at below a share.

Some folks think about this capricious amount differently and would say that would be a better yardstick, but, whatever the definition, these are shares generally traded outside the major exchanges. They are frequently unpredictable and unpredictable and their performance is awfully tricky to monitor or foretell.

The enticement to buy thousands of shares for some cents is one that regularly ends in many folks getting their fingers burned. What you have got to remember is that there’s a reason the stock is so inexpensive – it’s actually not worth much and the chance of making a slaughtering on such shares is some distance from the foregone conclusion that some folks will try and convince you it is.

Creating the likely performance of these stocks is generally very unlikely as regularly there is little info available on the firms to do any sort of suggestive analysis. Do not be suckered into purchasing stocks just because a newsletter or e-mail tells you it’s a dead cert.

There are lots of sharks out there who will engange in the practice known as’pump and dump’, whereby they will try to generate unsubstatiated hype about a selected stock in the hope that there’ll be a rush to buy, allowing them to sell on their valueless holdings to gullible tryouts.

When you buy penny stocks you actually must excercise caution and do your own’due diligence’ – if you do not, you’ll soon finish up regretting impetuous penny stock purchases. For penny stock trading offer an excellent service.

To line up an account you’ll need to submit an application by post. This may be downloaded in PDF format from their site.

When you have opened an account you’ll need to pay for it ( more details of how to do that are listed at the site too ) and then, you are ready to trade. In extremely simplistic terms you may place orders with your broker through the net trading interface and they are going to carry out your purchasing and selling instructions.

Each trade you carry out, purchasing or selling, will cost a small commission to the broker. Presumably your interest in penny stocks implies you’re looking to make fast returns.

It’s correct that he rewards can be amazing – it is completely possible to make masses of greenbacks in a day. When you buy penny stocks you need to realize this.

By the same principle, get that wrong and the losses can shortly mount up too. Day trading is not necessarily profitable, but it is always dangerous. Naturally, if the share price falls, you’ve a call to make – sell it at a loss, or hold on in the hope that costs will recover and you can lessen your losses.

You’ve got to understand that not every time you buy penny stocks will they go up in value in the course of one trading day. This implies you might finish up with your risk capital tied up in one company, leaving you unable to make any other trades till you dump the stock.

For those with some funds to invest, this may present a little bit of a quandary when you buy penny stocks. There’s little point purchasing so few shares that whether or not the price rockets upward, you’ll make just a couple of dollars – you have to not forget to take brokerage costs from overall profits too.

On the other hand if the stock price increases by a dollar, you have 0. The simple arithmetic is easy enough, so you must look punctiliously at whether an investment is probably going to be worthwhile relative to the amount you’re able to invest.

It doesn’t need to be said the more investment capital you have, the more you stand to make, or lose when you buy penny stocks. Opening a trading account is easy enough when you know the sort of account you need.

Try a few shops to find the hottest deal for your own private circumstances. Charges will change too, and these all have effects on your bottom line, so be sure you know how much each trade is going to cost. Eventually, I can repeat my earlier recommendation – never invest anything that you are unable to afford to lose.

When you buy penny stocks you are making a bet, and if you do not have the constitution for risking the price, don’t start with online trading of any type. Chill and have a good think about what you are planning to do and what you hope to gain through your investments.

If you are thinking of day trading you’ll need to be in a position to observe your stocks across the trading day – if you aren’t going to be ready to do this, you won’t be ready to sell when the requirement arises – i.e if the price should spike temporarily. If you’d like to start trading penny stocks online, read up on the topic fastidiously and learn as much as you can.

There are masses of helpful web sites like where you can start to learn to buy penny stocks and also, I have included some helpful resources below for those needing to learn more. Never let anybody tell you that it’s as straightforward as falling off a log though – if it was, we’s all be millionaires by now!

If you would like more information on how to buy penny stocks click a link below.

Buy Penny Stocks

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Buy Penny Stocks


Penny Stocks and different concepts

Penny Stocks are the micro cap stocks with a low per stock value. The definition of these stocks varies for different people and is generally understood as the stocks with low value. Penny stocks fulfill the market criteria to a certain level and hence, they are not included on major stock exchanges. Instead, these are in pink sheets or OTCBB. PS is a risky investment and can potentially help in getting huge earnings, but only if they are chosen properly.

Understand Market Capitalization

Penny Stocks have the commonly used term ‘Market Capitalization’. Market cap is the total worth of a company. For example, the company floating 10 million shares with $4 value per share will have the market capitalization of $40 million. The greater number of outstanding shares will correspond to higher stakes. If a large amount of money is involved in a certain penny stock, the control is usually lost. The regulatory controls for penny stocks are quite mild and can be hampered soon.


Penny Stocks and different concepts

Pricing of Penny Stocks

Penny stocks can be bought at different pricing, but it is always below $5 per stock. You can purchase the PS below the cut-off price. Some investors consider that the stocks below $5 are included in penny stock listings and others make the mark below $1. In terms of market capitalization, the stocks with a market cap below $300 million are penny stocks and there are many companies included in the listing. Read more on penny stocks listing at

Nano cap stocks are volatile in nature and their value is different in various phases. It is necessary for the investors to make the worthy investments and invest in penny stocks, which can generate more money for exploratory activities. There are many companies, which have actually gained higher positions with consistent growth and have better scope in sense of getting towards major stock exchanges.

There is no ethical millionaire made through penny stock trading and small-cap companies can become bankrupt with no good criteria followed. Penny stocks have been around for past many decades and provided a lot of opportunity to the small investors to gain higher ROI.

Why do you need Penny Stock Listing?

Penny Stock listings are compiled on web, but many people don’t know about them. These lists are the results of your diligent efforts to focus on the stocks, which are most likely to appreciate on short term basis. Penny stock listings can allow you to watch and track the stocks with ease. It can help you to focus on short term goals and make easy monitoring for hundreds of penny stocks in the market. You can get high response with best stock listing and it will probably get towards higher levels of success.


Why do you need Penny Stock Listing?

Your penny stock listing will help you in tracking the stocks, which you are watching without hassles. It is impossible to find out most reputed stocks from a list of thousands available options from pink sheets or OTCBB. By the time you look at one percent real shares, it will be probable to find the wrong ones also in the list.

Keep the right track

Penny stock lists will help in getting the actual gains and losses for the quotes of brokers. You can sell the stocks as soon as there are profits involved in it. A part of penny stocks listing can be saved for later usage. It is feasible to consider the stocks for the right time to make the right choice. Click here to read more about the right stock.

You can purchase penny stock lists to make entry and exits to the different stocks. It is feasible to make the penny stock researches by looking at the financial status of the companies. Small companies are sometimes lastly benefited, which can risk your investments. However, some companies having small budget and big ideas can probably get towards a better scope. The economic trends can grow and catch up with best planning and appropriate track. Stock prices can soar up or get down according to the market play.

Penny Stocks: Choose the right Stocks

Do you know that Microsoft, Southwest Airlines, Dell, Wallmart and many other big companies began their stocks as Penny Stocks?

There are many real companies with ethical views, which focus in bringing their new stocks as micro stocks and gaining eventual growth and getting from OTCBB to major stock exchanges. The problem with penny stocks is that there are very less chances for the companies to grow into huge empires without strategies and perfect blueprint.

Penny stock traders require finding the right stocks for the perfect growth of the company. There are many people who don’t trust micro stocks for the reason of getting losses. You can buy or sell the stocks according to your own study.


Penny Stocks: Choose the right Stocks

The main reason for people to make millions from penny stocks is that there are great prospects in 3-5% of stocks. The secret of penny stock trading is to find out the right stocks and finding the appropriate companies to make the choice.

Many people make a lot of money through penny stocks and they do it only through financial research to buy and sell the stocks for maximum gains with mitigation of losses. The reason for losing a lot of money is because people make no or little research for their investment. The shortcuts are many, but there is absolutely no resultant for these techniques.

Penny stock investments require intensive research and knowing exactly what you’ve been looking for. Penny stock investment guides are available online to get whole detail about the appropriate choice of stocks. Investors need to know the right times to buy and sell. There will be tremendous help with best investment tips, but don’t get carried away by the ads floated online to gain money in least time. No company can make you millionaire in a few days and you must know it to make the appropriate choice for the stocks.

Penny Stock Trading

Penny stock investments are interesting investment decisions. The gain and loss can be spectacular and the overall ratio is higher for loss side. Many people become millionaires after becoming penny stock traders, but most of them actually know about the increase of prices on a particular time. You can begin your penny stock trading, but make sure that you learn about these stocks very well before making the investment. One wrong move can lead towards loss of your hard earned money and make you negative about stock investments.


Penny Stock Trading

Penny stocks are micro cap stocks having per stock value of $5 or less. These stocks have low market capitalization of companies, which means that the total assets and liquid money with the company is lesser. Mostly, the beginner companies in any niche are associated with penny stocks. These tiny stocks have high volatility and low potential. It is integral for the investors to make choice for the perfect stocks having real background. Penny stocks are risky and choosing them is quite difficult for the investors. You must learn the right ways to trade them. Read more about choosing the right stocks at

Make the portion of your investment dedicated for micro cap stocks and don’t go beyond it. You might be tempted to do more of investments to make simple money, but it won’t work till you buy the right stocks in your investment. If micro cap stocks can produce great gains, it can make you bear huge losses too. Understand the reality that penny stocks can’t make you millionaire as these involve high risks and returns on investment are not wonderful. You can take these stocks in different portions and not involve too much money into one stock as the probability of losing increases with this strategy. The potential gains can be more, but becoming greedy can ruin all your money and make you penny less.

Different perspectives of Penny Stocks

Penny stocks are the micro cap or tiny stocks having value less than $5 per stock. These stocks are responsible for trading for the companies with a beginner setup. Penny stocks have the accounting for three fifth of NASDAQ stocks. These stocks are quite popular, but the biggest issue is that they are not predictable and can change their value very soon. Hence, the investors need to be very particular in making the right choice. One wrong move can lead towards negative results.

Penny Stock: Entrepreneur View

Penny stocks have low share price and these are mostly traded in thousands or even ten thousands in number. The investors can accumulate a lot of stocks as per stock pricing is lesser. Let me explain penny stocks with an example. Suppose you have a company with good blueprint and want to sell some products. You can sell your widgets to the entire world, but don’t have sufficient money to produce them. So, you can make the decision to raise money by taking your company towards public. The initial price of your stock will be less, but gradually, the prices will increase with the better need of products in the market. There are chances to sell off millions of stocks at the price below $5. You can sell millions of shares and get profit from your venture. On the same basis, you’ll be sharing the gain with the share holders. Penny stock is the way to get the company on public platform and gaining trust of people by floating your company’s shares at the minimal price.


Different perspectives of Penny Stocks

Penny Stock: Traders View

In case of stock traders, penny stocks can be seen as a number of options. People say that the stocks traded below $1 are penny stocks and others might reveal that the stock with lesser total market value is penny stock. There are different categories in which the stocks should be analyzed to be marked as penny stocks.

But for stock traders, the question “What are penny stocks?” can produce multiple answers. Some will say that any stock which trades for less than $1 is a penny stock. Others say that a stock can be classified as a penny stock depending on the total market value of the company issuing it. Others have specific categories into which a stock must fit before being classified as a penny stock.

Penny stocks can easily go up or down depending on the escalation or degradation of prices. These stocks might be associated with wrong owners as there are many chances for the stocks to get linked with scams. Penny stocks can get profits for you but the chances are that you might lose your money with one wrong move. These stocks are volatile and can’t be held for long term. So, make your right move by choosing the right stocks to be invested at the best time. Penny stocks are opportunity to grow and learn about stock exchange and associated investments in detail. Know about these stocks well before making the investment.