3Wk·

What about HP?

$HPE (-0.81%) seems to be cheap, have you ever had any problems with auditing, security or anything like that?


Or is it that your products have a lower quality, in terms of cybersecurity or quality in general? Or can't you compete in the market?


Or maybe it's just that they've been mismanaged the last few years?


Because if it is not for any of these reasons I really don't get it 🤔.


In 2023 it was trading at 27x earnings and today it is barely at 9x earnings and yet it is expected to grow at an estimated 6-8% compounded growth over the next 3 years (Koyfin data)


On the other hand the number of shares outstanding has only gone down in the last 8 years


They have 17B of debt but also 13B of cash so their financial situation looks stable enough.


The Enterprise Value is estimated at 29B (although it is only an estimate of analysts) but it trades at 23B and the Net Book Value (The book value go) is above the price paid today for the shares on the stock exchange, ie theoretically (because for many reasons then reality is not so) if the company were closed tomorrow shareholders would receive more for its book value than for what the share itself is sold on the stock exchange 📈


The company is literally worth $17 per share on the market and just in accumulated cash it is worth $10/Share 🤷‍♂️

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5 Comments

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Supply chain is heavy on China and Mexico
Sales team under performed on numerous recent deals
Juniper deal could eventually no go trough making HPE having to pay contract deadline breakup fees

Easy to understand ( watch the guidances )
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@Jo_Wolf make sense but in spite of that it’s currently undervalued I mean it’s 15$ a share and the company has 10$ a share just in cash they do not have serious debt it could be an opportunity don’t you think? 🤔
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@Alfre2 I currently own HPE, but in current market I ain't buying equities, I'm going to commodities and bonds
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@Jo_Wolf Fair enough, it’s a good timing long term bonds most of them are paying now 0.5-1% more than the last month just because of the current panic in the stock market
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@Alfre2 If you really want equities, buy consumer staples and / or healthcare. But otherwise I advise defensive strategy for the coming months.
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