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Will H-P Be the Turnaround Stock of 2013?

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    New Generation Research founder George Putnam on the outlook for Hewlett-Packard.

  • Duration 4:39
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They might well as 2012 does come to a close.

Would you have -- a year ago the Bank of America would have been the best performing stock on the -- this year while George Putnam new generation research founder and turnaround -- added -- well he predicted it so you may want to find out what is he looking at the 2013 he joins us now on the fox.

This is exclusive from Boston George thank you for joining us great -- on the B of -- by the way.

So this year you calling on HP to be the turnaround stop the 2013.

I mean I have to say let -- be disastrous few years for HP that PC sales.

-- dwindling.

Revenue is flat declining profits increased debt exposure to Europe.

Note by the way do we need to mention the a purchase of autonomy I mean I could go on and on what on -- do you like about HP.

Well HP has several things going for -- both in the short term and longer term.

In the short term the fact is down so much.

Probably means that we'll see a pop early in the year there's been so much selling late in the year pretax losses portfolio window dressing.

That all stops January 1 and -- that pressure gone then the stock may rise.

Longer term it'll take awhile but they've got a lot of the things that we look for in.

They turn around situation -- they have a solid business they've -- well known brands.

They've got decent balance sheet.

And they have new management which you often have to have -- -- around.

Interest and talking management -- Meg Whitman a very.

Seasoned.

CEO but she's been unwilling to split up this company has spin off the PC side of the business are you confident that the company is heading in the right direction what would you like to -- HP do.

Well she's taking her time which is a good thing we in the previous CEO's and they got a lot of -- in the last five or six years.

How come in to make a big splash which has hurt them she's doing the basics -- blocking and tackling cutting costs.

Boosting are indeed figuring out where they can make money and where they can't and in time I think shall make the right moves.

Are you concerned about how it appears that the consumer is.

You know turning more Malta tablets over the PCs.

Well I'm sure they'll find a space there are.

But they're also making inroads in other areas like the cloud like services like software.

-- got a lot to work where and they just need to figure out where they can make money.

Well -- bulk of fully let ya what do you also have nine other stops.

That you see is -- candidates for 2013.

Who all they have wine.

Odd to be honest I didn't look at buy list -- recently but they're really it.

Very they're the biggest losers for this year are here we don't know -- say they Advanced Micro Devices.

Again for a short term -- longer term they need the PC world to improve but I think they've got short term potential Allegheny Technologies.

Same story.

Yeah they have been there ought to basically the same story I I can't -- the table and say they're all going to be long term winners.

But over the next thirty to sixty days.

I think they'll do quite well.

What do you think probably get back to HC what do you think HP is done wrong to get themselves simple what -- we could they have done Betty you've been on the stock since June -- -- down 38% also since you jumped on in June.

We still remain optimistic.

Well there was -- to -- a big surprise with the accounting problems that -- autonomy autonomy but -- out by the armed beyond that these things take time.

And as we all know the market's not break patients so when they come out with poor quarterly earnings beef stock gets hip.

But if you wait for the earnings to look good to stop we'll have -- and -- have missed most of the -- potential.

What about the fiscal cliff from -- -- could do to the economy the consumer and the consumer that would buy HB products how concerned I.

Well that's certainly a short term negative.

And I cat I can't forecast what Washington is going to do.

But I think over the long term they've got the stuff to build around.

That you'll see the stock do pretty well all right let's show prediction we'll see how it goes slid 2013 for -- -- thank you.

George Putnam new generation research found -- really appreciated thank you.

-- very welcome thank you are.

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