Hewlett-Packard Rope a Dope Trick $HPQ

Hewlett-Packard announced that it will self amputate into two entities. HPE or Hewlett-Packard Enterprise will keep Meg Whitman so guess what part she thinks is better. The printers and personal computers will be set adrift in something else. Shareholders will need to guess at what has better prospects. Enterprise computers which sounds a lot like what IBM is trying to do or commodity products with hyper thin margins and nothing new or exciting on the horizon.

HP does have brand and it may well be that the printers and personal computers will attract a take-over offer by someone who wants to bulk up; or alternatively by someone who wants to prevent someone else from bulking up.

Either way it reminds me of a Viking’s funeral. You know where they put the olde king out onto a row-boat and set it on fire for a glorious send off. Then the new king does what he wants. That’s probably the fate of printers and personal computers.

Enterprise is hardly a new notion and has lots of contenders. What does HP or Meg Whitman have to offer. A promise of Blood, Sweat and Tears will not do it.

Meh you can do better with your money.

George Gutowski writes from a caveat emptor perspective.

Hedge Funds are Stupid $DJX, $SPX, QQQ, $VIX, $VXX

This market turn down will reveal how many hedge funds are really stupid with good marketing materials. They all have mega assets and are investing in the same short list of stocks. Which means no one is really smarter than the rest.

Just saying

George Gutowski writes from a caveat emptor perspective.

Stop being a Cartoon Fortunes to be Made $VXX, $SPX, $DJX

Yes the market crashed. Are you surprised? Remember the Bugs Bunny Cartoon where the cartoon character runs off the cliff holding an anvil and suddenly the laws of gravity take over. Stop being  cartoon.

Lots of great stocks on sale at very cheap valuations.

George Gutowski writes from a caveat emptor perspective

BlackRock vs Berkshire Passive vs Active with a dash of Warren. $BK, $BRK.B Larry Fink vs Warren Buffett

Barron’s Magazine likes BlackRock $BK. With good reason. The trend is to low fee ETF’s and BlackRock has a the market tied up. Hard to argue about the base case. Some more discussion on entry point is warranted.

The other end of the scale is Berkshire Hathaway. The exact opposite of passive they make large bets and are actively managed. They like Coke not Pepsi. They like IBM despite Warren Buffett’s publicly stated aversion to technology nuanced with his close relationship with Bill Gates. So far the cult has been happy. Buffett does have the golden touch.

So picking one stock vs another is an investing psychology behavioural tell.

If you invest in both are you schizophrenic and doomed to poor results?

George Gutowski writes from a caveat emptor perspective

Sotheby’s is the Canary in the Mine $BID

Is Sotheby’s the Canary in the mine. When the uber rich and millionaires all start playing auction games it frequently is the sign of a bubble wanted to burst. Auction business is pretty good right now. Reminds me of Warren Buffett’s quote about the stock market. the market is like sex the best part is just before the end.

George Gutowski writes from a caveat emptor perspective.

Confusing or Normal How Investors are Shaken, Stirred, Panicked, $FXC, $BOND, $OIL

Will sovereign debt cause the next crash. Probably. The US of A will not be immune. Trillion-dollar debt and no ways of repaying it other than default or inflation. Default is more honourable but politicians are involved so there you go.

When sovereign debt crashes investors will be shaken, stirred and panicked. They’ll stampede into hard assets like real estate, commodities, precious metals etc.

Hey Canada suddenly looks real good. Balanced Budget, big but not ridiculous debt, oil, gold, commodity, intelligent peace-loving people with a penchant for funded healthcare. Hmm may go long Canadian Dollar.

George Gutowski writes from a Caveat Emptor Perspective