Monday, September 11, 2006

HP Computer Stock Prices- A Buyer's Market

HP Computer's stock prices are holding tight. With allegations in the media of illegal practices in information gathering, from dumpster diving, to spyware, to using cell-phone logs of competitors and officials in the computer industry. Executive Boardroom member Dunn, of HP Computer, is on the chopping block for this recent scandal. Remarkably, the stock price has weathered the storm thus far. However, as more and more people catch wind of the story, and the media becomes more interested in the happenings of HP Computer, the stock prices are bound to fall. Even as Microsoft held trial for monopolistic practices, their stocks fell. However, while there is egg on the faces of HP Execs and company employees, a true economist would see the benefit to be made. HP stocks may plummet through the floorboards, but it is sure that they will bounce back. A small scandal like this one never hurt anyone, as far as corporate America is concerned. This is a minor case when compared with the Firestone incident of 5-7 years ago. Firestone killed customers, HP doesn't have that to worry about. For a more relevant example, Microsoft stock is strong as ever, and they were drug through the dirt much worse than HP will be. While courtroom trials are likely, it seems it would be very difficult to end a computer company in today's modern world. We rely so heavily on computers that it would only take the release of a newer, smaller computer to save HP's future. That said, as stock prices fall (if and when, yes) a true economist would snatch them up. As stockbrokers say, "the trend is your friend." While the stock is down, it will grow in the future, as the memory of this recent scandal fades and the computers get smaller and cheaper. We will see if HP has the same fate as Microsoft, or if it is destined for corporate doom. Time will tell, and so will the ticker...

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