PC Dead? Well The Trio Doesn’t Think So: Hewlett-Packard Company (HPQ), Dell Inc. (DELL), and International Business Machines Corp. (IBM)

One of the most important factors for an investor is to monitor a company and also the sectors that specific company is planning to venture in. IBM is a steady stock and what you see is basically what you’ll get. This itself is good enough keeping in mind the performance their competitors. HPQ and Dell are yet to make strong moves on software, cloud computing and enterprise. HPQ’s and Dell’s performance in hardware would be the key as far as predictions go with regards to their future venture. These three sectors are very promising considering the scope of revenue involved. Cloud computing is the sector both HPQ and DELL should concentrate on, any announcements with regards to cloud computing would definitely excite their investors.

Verdict

IBM is in the driving seat as far as long term stock investments when compared to DELL and HPQ, but calculating an accurate stock price prediction is a tough proposition. Hewlett-Packard has an uncertain long run, but a good dividend yield and stable cash flow generation in the recent past suggest that the stock would have a better short term run among the three. As far as Dell is concerned, the present dip in the share price of the company creates a small opportunity for purchase before the price starts climbing.

2013 promises a twists and turns for both HPQ and Dell. I’d be surprised to see Dell dipping further as far as stock value is concerned, their margins have always been steady over the years and they are yet to make a mark in enterprise and software. This year is where all of Dell’s investments to enter uncharted territory is going to start paying them back. A lot of talk is going on about Dell’s take-private deal set to take place soon, but as things stand the deal is said to lose momentum and that might be a concern for investors. Bankers are pretty confident the deal will go through, if it doesn’t you could see a steep dip in the share value. The deal is expected to be confirmed very soon and is valued at $ 22 billion making this one of the biggest take-private deals in recent years. Thus keep your eyes wide open, an awesome windows of opportunity coming your way.

The article PC Dead? Well The Trio Doesn’t Think So originally appeared on Fool.com and is written by Tony Thomas.

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