Hewlett-Packard (NYSE:HPQ) reveals earnings results soon. Ponder this Bear Case Scenario:
The PC business continues to decline, drop, fizzle out and become increasing less relevant. In the mean time it remains a commodity. This does not create shareholder wealth.
Competitors such as Cisco look at HPQ Data Centers rapaciously and covet the market segment. Major competition will cause pricing compression. Cisco needs new markets to drive growth. HPQ may be tomorrows lunch if they are not careful.
HPQ R&D and investment spending is lagging the competition. They simply are not keeping up and will eventually be overwhelmed.
George Gutowski writes from a caveat emptor perspective.