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Why HPQ Could Be Chanos’ Value Trap: The Long (Long) Case

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Why HPQ Could Be Chanos' Value Trap: The Long (Long) Case

 

On Wednesday, Jim Chanos CEO of the short biased Kynikos Associates hedge fund, called Hewlett-Packard Company (NYSE:HPQ) “the ultimate value trap for investors.” Chanos states that many investors get stuck in value traps after following other famous investors into a stock. So…. we will take that logic and present the long case for Hewlett-Packard Company (NYSE:HPQ) below.

The post is by a brilliant student, Sarabjit Cheema, BS 2011, NYU Stern. Enjoy!

Hewlett-Packard Company (“HP” or “the Company”) is a leading  technology company which Serves individual consumers, small- and medium-sized businesses and large enterprises

  • Comprised of five business units:
  •  PC’s
  • Services
  • Printers
  •  Servers
  • Software
  • Market Capitalization of ~$37.2 billion

Enterprise Value of ~$59.4 billion

Recent stock
price: $18.81

Ticker: HPQ

Full presentation continue in scribd:

HP Presentation New

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