Unfortunately. They do not seem to have any strategy that will bring about any positive changes. Or at least I don't see it....
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This is a joke post right?
HPE common is dead money. It trades sideways supported on the bottom by a dividend and buybacks that aren't sustainable for long as revenue declines. HPE is spent. Put your money elsewhere.
Funny how we continually hear from management about how great the company is and how incredibly undervalued the stock is. IMO this is like your mother telling you that you are handsome, take it for what it's worth.
Bottom line is the market very much disagrees with the management outlook and the most recent corporate booster on here who apparently knows more than Goldman Sachs. If people would rather invest in Cisco or Dell in spite of your arguments, there is a message in there...
This downgrade from Goldman was entirely due to a very generalist view that "there will be less IT spending in early 2022", along with declines in DRAM memory pricing (which is happening) being indicators of average server prices - one of HPE's biggest revenues sources. I respectfully disagree on the basis of company performance, forecasts, and current macro trends.
Interesting to note that recommended two companies, Cisco and Dell which are:
- Higher leveraged than HPE (Dell)
- Have no yield, or lower yield than HPE, along with worse outlooks for dividend growth
- Considered overvalued either to a well-established discount or fair value multiple, unlike HPE.
This is a great business with great fundamentals, but as an investor, you're buying it at a very cheap price following the downgrade - I'm going to buy more HPE
Goldman Sachs downgraded HPE stock to sell yesterday, and it was down over 8% for the day.
Hey, just because they’re behind the curve on any new innovations doesn’t make them bottom feeders. Catfish make a good living eating turds at the bottom of a lake.
The strategy is the same as always the people at the top keep all the dough,while professing a passion for ethics
Look back 20yr at all the CEO's; Carly Fiorina, Mark Hurd, Leo Apotheker, Meg Whitman, Antonio Neri. Not one CEO had a clear strategy that worked. HPE has gone full circle. Minus the desktop/laptops, HPE is Compaq 20yrs ago, but smaller and less efficient.
There hasn't been any strategy for a while.