Hewlett-Packard, (HPQ) could make new fifty two week highs today after its earnings announcement. HPQ is currently trading at $33.85. Hewlett-Packard has been trading in a fifty two week range between $20.25-34.09. HPQ had a relatively flat quarter overall, the company posted mixed results throughout its many divisions. Hewlett-Pack overall was able to beat EPS expectations by 0.12 cents a share. The company hopes to improve results across the board by cutting cost. By cutting cost the company plans to cut thousands of jobs. Initially the company had plans to cut 34,000 jobs, HPQ has increased that number by 11,00-16,000 additional jobs. The total number of job cuts could be north of 50,000 jobs. When companies are in an expansion phase they typically add jobs and the opposite being true in a contractionary period. A majority of the rest of the HPQ earnings call was dominated by the decision to cut jobs by such a drastic proportions. Looking at HPQ on the Ichimoku cloud, the stock is currently trading way above a thin bullish cloud. Although the stock is ripping to new fifty two week highs, its concerning that the company’s business plan is to cut jobs instead of product cost; or to focus on creating something new and innovative.
