HPQ was pounded last week after holding their Securities Analyst Meeting. The stock dropped to prices it hasn't seen since 2003, almost 10 years ago. Analysts hit the stock with a host of downgrades and new price targets, some as low as $10 a share. Pure brilliance to go out on a limb and downgrade a stock that has dropped from over $50 to $14 in over a year. Really? Do you have to go to college for that? It's like the weatherman issuing a hurricane watch while your paddling down your street in a canoe. A little late ehhh? Or shall we say better late than never. Even a broken clock is right twice a day.
Here are some of those brilliant analysts:
Deutsche Bank cut their PT to $10
Goldman lowered their 12-month price target to $16 from $20.
BMO is lowered their target price to $18 from $23
Sterne Agee lowered HPQ to a $21 price target.
HPQ will recover, it may take time, and it may not last, but HPQ will go back over $20. Ultimately if HPQ does not right the ship the company is going the way of Kodak, but they still have plenty of time and I think this sell-off is over done.
I am looking, and trading, for a move back to $17. I am trading out of the money calls specifically the $14 and $14.50 strike. I am in this weeks $14 & $14.50 calls as well as next weeks $14 and $14.50 calls.
Next Weeks Oct 20 $14 calls are $.46 offer and $14.50 $.20 offer at today's close.
I am looking for a very strong pop the next few trading days and for the stock to reverse its spectacular down trend.