Volume Spike As Short-Seller Jim Chanos Bashes H-P & PC Strategy

The pressure of Apple Inc. (NASDAQ: AAPL) is one thing, but Chanos alleges that the move is due to a decrease in its core operations if you start to back out the effect that the software and services acquisitions would look like if you just look at the core business.  This is despite what he calls a “cheap five-times earnings” story that is in a turnaround. Chanos calls it a cheap stock that will get even cheaper.

Today’s short selling news is certainly not good for H-P rival Dell Inc. (NASDAQ: DELL), and it probably only adds to outside pressure that Intel Corporation (NASDAQ: INTC) and Microsoft Corporation (NASDAQ: MSFT) are facing pressure as well.

H-P shares took it right on the chin based solely on “the Chanos bash” as shares had been up at about $19.50 before the Chanos bash around 12:30 PM EST as the stock then sank down to about $19.00 per share.  At 12:50 PM EST we have H-P shares still up about 2.4% at $19.33 and the average volume of 18 million shares has now just about been hit.

Dell shares are still up 1.1% at $12.26 on the day.
 
JON C. OGG