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S&P Capital IQ analyst Angelo Zino breaks down the three major issues at hand with Hewlett-Packard.
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Thank you.
-- -- -- struggle continues just one day after plunging to a nine year low chief executive Meg Whitman warned of an unexpectedly.
Steep earnings slide.
In 2013.
But our next guest says.
It isn't the outlook that has him worried it's the strategy.
HP analysts -- you know S&P capital IQ and joins us now.
-- do they have a strategy.
I'm being -- -- that they do have that they've laid out some sort of strategy.
When you know unfortunately the the key take away we we got from the -- they estimate is that.
This is going to be a longer than expected turnaround and it's going to be -- it's going to be painful.
You know we -- look at it we're looking at a three to five year recovery.
If you get a recovery at all and then really kind of three major issues at hand when it comes -- HP at least in our view.
The three issues being.
-- one -- executions which.
-- has still lots deal would -- the CEO turnover -- shorting but kind of on you know we're on our fourth CEO we -- Meg -- that's something that that could be changed tea with some stabilization however the other two issues.
Being a shift in technology in recent years that being you know into mobile short outlook you kind of look at tablets specifically.
That's being that's been the fastest growing this segment.
Product out in the market and -- -- drink industry.
And number three is going to be is competitive pressures and you kind of look at the Asian manufacturer that that.
They're just -- -- kind of eaten.
HP's long -- -- So let's talk a number one I mean Meg Whitman is a good CEO she's proved that the past it's been hard that they've had so many -- here but maybe she could right the ship.
Number two though that you mention.
That's really hard I mean as so many people have moved into mobile that it's a lot out a lot of companies are having this problem -- tried their hand with a tablet.
That failed how to they overcome that problem -- they have a solution.
Right I mean it is.
Yet it.
They're they're attempting.
-- -- that the real solution is you've got to come out with better products.
And you've got to focus in the right areas but to -- isn't it and we think they need to focus on is one.
Up on the cloud and until on tablets they haven't had success there on the -- -- you hope windows -- you know has some type the success we gotta go.
Real quick before we -- you reiterated her hold this morning why don't have a sell on this stock.
Yellow and just when you -- a look at their assets their brand name we continue to see value has value and some are okay -- sorry we -- so tight thanks for playing along we appreciate.
