Stock to Sell #2 – Hewlett-Packard Co. (HPQ)
Hewlett-Packard Co. (NYSE:HPQ) has been the victim of strong competition, slow PC sales and a soft economy. Long-term debt has risen sharply, and despite rumors of splitting up of the company’s divisions, nothing of substance has occurred and insiders have been heavy sellers.
The stock is trading within a clear bear market channel. A recent rally has taken it from the bottom of the channel in November at $11.55 to its 50-day moving average at just above $14.
Sell HPQ at the market since it appears that the next move will be down for a test of its low.