Investors stand by HP
Investors stand by HP
As reported in last week's Stockwatch, some analysts were critical of Hewlett-Packard adopting the same accounting practices as Compaq had used, but the markets stood by them. Shares in the newly merged company moved upwards on the US markets yesterday.
Analysts were critical of Hewlett-Packard (HP) because the company now lists research and development and corporate governance costs as a separate category, something Compaq did prior to its merger with HP. As a result, HP was able to list profits of US$33 million for its personal systems group and some would say help the markets look at the entire business in a positive light.
In the end, HP was the winner, when the markets closed last night shares in HP were up by 2 cents to close at $15.56 as investors took a 'so what' attitude to HP's listing preferences. Net profits for HP are currently at $721 million, which is 24 cents a share and revenue for the company remains a respectable $17.9 billion.
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