“HPQ prints a fairly strong quarter (PC driven, partially offset by declines in printing/Autonomy) on an improvement in margins across PC’s, printing and services. More importantly, management announced a $1.7B restructuring that’s expected to result in $3.0B - $3.5B in cost savings by FY’14 (which will be reinvested into new channels/R&D), and as a result, they raised the outlook on the fiscal year, as they’re now looking for $4.05 - $4.10 in earnings power (vs. $4.00 prior)…” That’s the summary of Wall Street’s “thinking,” such as it is, about last night’s Hewlett-Packard layoffs call—er, earnings call—and it contains so many remarkable statements you don’t know where to begin. The “declines” in Autonomy, for example, refer to the first revenue drop at Autonomy in at least ... Continue reading →

Harry CampbellJust a few questions during a recent conference call cost the nutritional supplements company Herbalife more than $1 billion in stock market value.Short-sellers — investors betting a stock will go down — had again shown their power in the market. Despite this influence, the securities laws do not require them to disclose trading or positions when talking about a stock.Herbalife may be an argument in favor of such a requirement. In that instance, David Einhorn, founder and president of Greenlight Capital, was the inquisitor. Mr. Einhorn is known for questioning the financial condition of Lehman Brothers months before its collapse. Since then, he has also successfully taken aim at Green Mountain Coffee Roasters and the St. Joe Company. He is so prominent that he ... Continue reading →