Well, Icahn made a splash on Wall Street today as rumors flew that he now has an interest in the beaten down Hewlett-Packard (HPQ). Hewlett-Packard has taken a big hit in 2012 and is down now 45.68% YTD. This news is still just a rumor since CNBC’s David Faber reported that HPQ is not aware that Icahn owns any shares, and that the company has had no conversations with him.
What catches my eye about this rumor is Icahn is known for making huge splashes in companies that are beaten down. And it’s almost inevitable that we see a move by him into Hewlett-Packard. The negative sentiment on HP could have driven the price down low enough to attract the buyers that are looking for a screaming buy. Quite ironic that it’s the holidays and were all looking for deals….
In breaking down its market cap, its assets minus debt are still worth 50 billion. That’s twice its current market cap of 27.84 billion. Can you say 50% off? Well worth Carl Icahn’s time to show interest….
Author: Peter Nitso