H-P shares plunged 20% to 6-year low, half shrinking

Hewlett-Packard's stock price in the past 5 years, Sina Science and technology news Beijing time August 20, the company's strategic transfer and reduce the impact of the quarter, HP's share price fell 20.03% in Friday, closed at 23.60 U.S. dollars, a 6-year low.　　HP has shrunk by more than 50% since February this year. Hewlett-Packard announced in Thursday that it was considering quitting its PC and mobile-device business, contrary to previous promises from management.　　After that, HP will gamble on the software business. Meanwhile, Hewlett-Packard lowered its forecast for fiscal year 2011, saying it was mainly because of shrinking personal and government spending and the Japanese earthquake that caused problems in the print business supply chain.　　Lower performance forecasts and strategic shifts have left investors with a whiff of concern about HP. Wall Street does not seem to be bullish on these new initiatives.　　Standard Poole, the rating agency, argues that the spin-off of the PC business will have a huge financial impact and has included HP's rating on the negative watch list. Richard Kugele, Needham analyst at US Investment Corp., said: "Some of Wall Street's remaining confidence in HP may no longer exist." It is clear that these radical measures have been made in the context of the downturn, with a sense of desperation.　　Kevin Hunt, a Auriga analyst at the US investment bank, said in a research note that HP's situation could get worse before it Kevin Hunter. The Wall Street Journal wrote that sales of traditional PCs were growing weaker, with only 2.6% per cent in the second quarter. Fierce competition has already piled up the price and profit margins of PC makers.　　Manufacturers such as Hewlett-Packard have only 2% to 6% per cent of their PC business margins, while analysts expect Apple's Macintosh computers to have a profit margin of 14% to 17%. For the fourth quarter, HP expects a diluted earnings per share to reach $1.12 trillion to $1.16 trillion, below the industry's expected $1.31 trillion.　　Revenues will reach $32.1 billion trillion to $32.5 billion trillion, less than the 34 billion trillion dollars expected by Thomson Reuters. Analysts say HP is moving in the right direction, but this is not an easy task. As HP announces that it will consider selling its PC business, consumers may hesitate to buy HP's PC products in the future.　　And it will take several quarters, or even years, to solve the current uncertainty. Katy Huberty, analyst at Morgan Stanley, said: "HP plans to Keti Huberty the Low-margin PC business and focus on the corporate market again, but uncertainties will lead to a short-term Neinian of its share price." "To develop the software business, Hewlett-Packard announced that it would buy British software company autonomy 10.25 billion dollars." Needham analyst Kugler said the deal was large and would limit HP's future acquisitions. Auriga analyst Hunt also believes the deal is on the high side. (New Tie)