Topped for next 2 years
업데이트됨
Many indications here that HP Inc. has topped throughout 2022. I expect the reaction to their upcoming earnings report on May 31st will be negative, whether or not they report decent earnings. Forward P/E will be revised downward.
Technical Analysis from 2012 shows we have 3 major rallies.
The length of price movement and time extended in each of these rallies are closely related to one another.
This indicates correlation - meaning these are subwaves of a larger wave and are therefore connected and shaped by one another.
A retracement back down to the .382 fib line is a minimum retracement which still indicates a -45% drop from current prices.
Connecting the tops and bottoms forms a nice channel.
We recently overshot the top of the channel and swung back down below indicating a rejection of further price increases.
This "throw over" is a characteristic of end moves.
RSI indicator shows major divergence between waves iii and v of wave 5. Also indicating a top.
Currently HP Inc. is the highest valued tech stock in the computer hardware industry if you use a stock screener like Finviz.com.
I found this very surprising. Again, earnings are on May 31st and the charts are foretelling a selloff.
Currently many investors are hiding in tech stocks that they find "safe".
So ask yourself, is it likely that HP will be selling more computers in 2023 than in 2021 and 2022?.. or is it more likely the opposite?
When is the last time you looked into buying an HP computer or saw an office supplying their staff with HP?
They have nothing that separates them from other computer hardware companies like Apple, Dell, Lenovo, Logitech, etc.
Is there a bullish argument to be made? I am struggling to find one looking into a future of higher prices and lower consumer spending.
Market Cap = 35.57B
Income/Earnings = 6.52B
Effective P/E ratio = 6.16
Forward P/E ratio = 7.90 (currently priced for increasing sales but should be revised downward soon as a result of inflation and future expected returns declining)
*Not financial/investment advice, although I find this to be a very compelling case. I do currently own Put options on this stock. Trade at your own risk.
Technical Analysis from 2012 shows we have 3 major rallies.
The length of price movement and time extended in each of these rallies are closely related to one another.
This indicates correlation - meaning these are subwaves of a larger wave and are therefore connected and shaped by one another.
A retracement back down to the .382 fib line is a minimum retracement which still indicates a -45% drop from current prices.
Connecting the tops and bottoms forms a nice channel.
We recently overshot the top of the channel and swung back down below indicating a rejection of further price increases.
This "throw over" is a characteristic of end moves.
RSI indicator shows major divergence between waves iii and v of wave 5. Also indicating a top.
Currently HP Inc. is the highest valued tech stock in the computer hardware industry if you use a stock screener like Finviz.com.
I found this very surprising. Again, earnings are on May 31st and the charts are foretelling a selloff.
Currently many investors are hiding in tech stocks that they find "safe".
So ask yourself, is it likely that HP will be selling more computers in 2023 than in 2021 and 2022?.. or is it more likely the opposite?
When is the last time you looked into buying an HP computer or saw an office supplying their staff with HP?
They have nothing that separates them from other computer hardware companies like Apple, Dell, Lenovo, Logitech, etc.
Is there a bullish argument to be made? I am struggling to find one looking into a future of higher prices and lower consumer spending.
Market Cap = 35.57B
Income/Earnings = 6.52B
Effective P/E ratio = 6.16
Forward P/E ratio = 7.90 (currently priced for increasing sales but should be revised downward soon as a result of inflation and future expected returns declining)
*Not financial/investment advice, although I find this to be a very compelling case. I do currently own Put options on this stock. Trade at your own risk.
노트
Based on time ratios and wave character, this is my most supported count.
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