Selling in HPQ Overdone; Stocks 6% Undervalued
August 17th, 2010
Because I will be busy with final page proofs on the text, I will be unable to edit the full report on HPQ this week.
The analysis suggests, however, that selling in HPQ has been overdone, given its free cash flow, growth rate in cash flows (from operating activities and free), cost of capital (of 8.1%), return on invested capital, and stability measures. Adjustments were made which lowered reported operating cash flows and increased balance sheet debt.
