Hewlet Packard (HP)
HP releases their earnings today and showed weakness during the day so I was 'compelled' to buy these. Here were my catalysts:
* The big unknown is will HP show growth and what will the guidance look like. For the second part, nobody knows but insiders, but first part I based this on empiracle knowledge. Retailers are getting slammed (known) and so they are going to cut prices AND stock up on the stuff that actually sells. If you look by your local BestBuy, Office Depot and whatever, notice that most of the laptops and desktops are HPs? Just trying to solve an unknown with a known.
* Marketing. HP has hired the likes of Serena Williams, Jerry Seinfield, Shrek, Shawn White, Jay-Z, Beyonce, etc. If the world is as weak-minded as marketing people will have you believe, then with that much marketing and brand internalization people will buy. Break down that list into demographics and you'll know why I like HP's marketing strategy even more.
* P/E: Low at 20.
* Still have plenty of profits from weeks before, so a little gambling here can't hurt :P
Buy to Open: 10 calls of HPQ Dec 52.5 at 1.15
* The big unknown is will HP show growth and what will the guidance look like. For the second part, nobody knows but insiders, but first part I based this on empiracle knowledge. Retailers are getting slammed (known) and so they are going to cut prices AND stock up on the stuff that actually sells. If you look by your local BestBuy, Office Depot and whatever, notice that most of the laptops and desktops are HPs? Just trying to solve an unknown with a known.
* Marketing. HP has hired the likes of Serena Williams, Jerry Seinfield, Shrek, Shawn White, Jay-Z, Beyonce, etc. If the world is as weak-minded as marketing people will have you believe, then with that much marketing and brand internalization people will buy. Break down that list into demographics and you'll know why I like HP's marketing strategy even more.
* P/E: Low at 20.
* Still have plenty of profits from weeks before, so a little gambling here can't hurt :P
Buy to Open: 10 calls of HPQ Dec 52.5 at 1.15
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