Bill Cara: A question shareholders of H-P must consider, Wed., Sept. 27, 2006, 12:20 PM

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September 27, 2006

A question shareholders of H-P must consider, Wed., Sept. 27, 2006, 12:20 PM

Soon, the Chairman/CEO and former Chairman of Hewlett-Packard (NYSE: HPQ) are going to answer questions put to them by a Congressional committee.

If they plead the Fifth, on the grounds that their answers may criminally implicate them, do you the shareholders have any option but to sell your shares?

If I were involved in HPQ shares (I'm not), I'd hold a full position put option as insurance. I hear the word "Fifth" and I'm history. Sayonara.

But everybody has to make their own decisions in life. As for me, I'm not going to support people who think they may have committed criminal acts.

Is this something I dwell on? Hardly. To me it's automatic -- it just speaks to personal values.

Do I think Hurd and Dunn will plead the Fifth? Well, they did refuse to testify voluntarily, and have been forced to under subpoena.

A subpoena is usually the writing on the wall.

Posted by Posted by Bill Cara on September 27, 2006 12:20:09 PM | Category: Cara Today in the Market

Discourse

Re: "If I were involved in HPQ shares (I'm not)"

We read you, and if you look at the current stock price, others are also following suit. Although it would be nice and ample satisfaction to retrieve a dollar or two as a parting shot. (-;

Posted by: oratier at September 27, 2006 12:30 PM [link]

Off topic. steel maker Worthington Industries missed earnings last night and cited:

"Demand in two of Worthington's key end markets, commercial construction (especially office buildings) and automotive, may continue to soften. Recent announcements of production cuts by General Motors, Ford and Chrysler will create a more challenging environment for the Steel Processing segment. Uncertainty regarding the economy and interest rates, coupled with relatively high material prices, has contributed to delays in planned commercial construction starts by customers of the Metal Framing segment. Other end markets served by the Pressure Cylinders segment and certain of the company's joint ventures continue to be strong and stable."
Most commentators on CNBC have talked of residential construction slowdown being picked up by commercial construction. I wonder if this is just specific to this company or a new sign of slowdown. UBS downgraded X and NUE on monday on concerns in the flat steel segment. Any one have any further insights. WOR is down today but other steels like aks, nue and X are holding up in similar segment of steel industry.

Posted by: fmj at September 27, 2006 1:05 PM [link]

Bill,

In a future posting can you address what you consider a prudent approach for your fixed income and retired readers on the coming market adjustment. They believe a correction is due; whether it's called a meltdown remains to be seen.

Here is the scenario...
We are approaching the end of the third (CY) quarter and the dividend checks are in the mail. Many readers are holding stocks such as PetroChina (PTR), for example, that pay $2.54/share in annual dividend; A few are holding defensive equities on par with a Berkshire Hathaway (BRK); others are heavily weighted in ETFs named: Streettracks Total Market Index (TMW) ISHARES Lehman USA Aggregate Bond Fund (AGG),ISHARES Dow Jones U S Real Estate Index Fund (IYR that also pays monthly and quarterly dividends. They are reluctant to simply revert to all cash (Money markets, Certificate of Deposits) unless there are compelling reasons. Any message for these non-price traders?

Thanks!

Posted by: oratier at September 27, 2006 1:41 PM [link]