Thursday, February 19, 2009

Hewlett Packard Ends the Tech Rally

Hewlett Packard is a very unsexy tech company that was doing all the right things. The company reported last night and missed revenue estimates big time, signaling the end of the untouchable phase for the new HP.

Under current CEO Mark Hurd, who took over for underwhelming Carly Fiorina and created the new HP, the company has exceeded expectations, improved margins, made a good acquisition of EDS - done everything it could to be more like cash flow machine IBM.

The big miss doesn't bode well for coming quarters. Methinks if they had some remaining tricks up their sleeve they would have used a couple this quarter.

Tech leaders have hung in well since the November lows. The market needs leadership and the financials are not going to do it. Those techs reporting January quarters, including Cisco and HP, are pointing to the fact that tech is not going to get it done either, at least in the short term.

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