On tonight’s MAD MONEY on CNBC, Jim Cramer said again that tech is where you want to be going into Q4, and if you don’t yet have tech that Hewlett-Packard (NYSE:HPQ) is the one stock where can still invest in easily in the sector. He liked the earnings numbers and the raised guidance, but Cramer already telegraphed for tonight all day as hosting a CEO Mark Hurd interview today. This is not one of Cramer’s NEW HORSEMEN OF TECH, but it is definitely one he’s been behind for quite some time as he called Hurd a transformational CEO. It is up 20% for the year, and here is what one of his favorite CEO’s said (answers are summary, not verbatim):
As far as what happened after Hurd took over? ANSWER: no tricks, just focused on fundamentals and worked on cost structure. Innovation, service, fundamentals.
As far as Chambers of Cisco Systems (NASDAQ:CSCO) saying this is the most bullish environment? ANSWER: Best days are ahead and not behind it.
Strength of earnings? ANSWER: 65% revenue is outside US, strong growth in consumer and mobility all help, plus discipline in spending.
Is Microsoft’s (NASDAQ:MSFT) WINDOWS VISTA Finally Kicking in? ANSWER: It is helpful, although they never expected a Vista moment.
On Component Costs helping ahead? ANSWER: They are largest customer so they get the best deal. It may continue to benefit.
Acquisitions? ANSWER: They buy leaders, data center automation is where they will lead.
As far as PC differentials from each other? ANSWER: DESIGN, SERVICE, SUPPORT, FEATURES, INNOVATION.
H-P now has $131 Billion market cap as of the close. H-P shares closed up 1.6% at $50.14 on the day in regular trading, and shares rose another 0.5% after the interview. By the way, today appears to be a year-high close.
Jon C. Ogg
September 4, 2007
Jon Ogg can be reached at email@example.com; he produces the Special Situation Investing Newsletter and he does not own securities in the companies he covers.