We have told investors and traders worldwide what it would take the start the rally and this here has to stop and bottom out for the markets to look forward as they have no clarity and therefore the selling keeps up.
We are going to be teach people how this works going forward in our SMF Economic Club you can sign up now by sending an email to info@stockmarketfunding.com or by calling us today at 702-685-0772 we will be happy to update you so that you can start planning your futures moving forward.
FREE Sign Up www.stockmarketfunding.com let SMF explain to you what this mean for YOU how you can take advantage of this.
SMF NOTES Credit Suisse notes last night, while HPQ's Q1 EPS of $0.93 came in line with consensus expectations, revenues of $28.8 bln missed their est of $32.08 bln by a surprisingly wide margin. Printer consumables sales fell sharply, but a steep deterioration in hardware sales (negative margin) countered the profit impact.
If hardware continues to decline at close to 40% a year, margins could hold, though the installed base and future consumables sales would be impaired. But if hardware declines moderate, then consumables weakness could trigger a sharp margin contraction. Firm is assuming the latter scenario unfolds. Aggressive hardware price declines contributed to a 300 basis point shortfall in ESS margins versus firm's est. For FY09, firm is looking for EPS of $3.36 vs guidance of $3.76-3.88. They are also lowering their tgt to $30 from $35...
Kaufman notes strong recessionary headwinds finally took a toll on HPQ causing the co to report a January qtr revenue miss and revenue guidedown much worse than lowered expectations. However, its EPS results and guidance were in line with consensus due to favorable product mix toward software (3%) and printer supplies (14%) as well as cost improvements with its integration of EDS.
Firm believes this is the first material rev miss under CEO Mark Hurd's leadership since early 2005, indicating that this recession is putting a test even on strong cos, making peers AAPL and IBM's results and commentary appear even more impressive, in their view...
Collins Stewart notes the key takeaway from HPQ's call is IT spending continues to deteriorate as reflected in the big rev miss during 1Q and for the remainder of FY09. Both Benchmark (BHE) and Celestica (CLS) hold the highest exposure to enterprise hardware spending in their universe, which they expect to remain challenging.
Benchmark generated 46% of 4Q08 sales from the high-end computing market (e.g., servers, storage-related products), while Celestica generated 44% of 4Q08 sales from enterprise hardware markets (22% from enterprise communications, 13% from servers/mainframes and 9% from storage).
HPQ specifically highlighted a slowdown in server demand in January as "customers re-evaluated their spending and delayed purchases of equipment".
Prepare yourself for the "New Economy"