Hewlett-Packard Is Not the Lost Cause Everybody Thinks It Is

Business & Money

A year ago, the news about Hewlett-Packard was sounding pretty dire. The stock had plunged following an $8.8 billion write-down from its botched purchase of Autnonomy. Some observers saw the company in a perpetual turnaround. This in spite of CEO Meg Whitman efforts to explain that turnarounds take several years. Skepticism still abounded, with bears outlining why a turnaround wouldn’t work, and the rare bull arguing why Whitman wouldn’t be fired. The bearish sentiment prevailed, with HP’s stock falling to an 11-year low of $11.35 in November 2012.

I sided with the bears, comparing a strong comeback in HP with the likelihood of the Red Sox winning the World Series after its own abysmal year in 2012. The Sox, of course, did just that. And HP’s stock has gained some 95% in the past year, compared with at 22% rise in the Dow Industrials (which dropped…

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