This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

HP, Microsoft Cheap Despite Doubters, Says Fund Manager

Microsoft (MSFT - Get Report) may be cranking out cash, but on Wall Street the company has long been considered "dead money". Keith Trauner, portfolio manager for the GoodHaven Fund, says that suits him just fine.

"We love it when people talk about dead money because it means people have lost patience," he says of the company. The $69 million fund is down 2.2% since being launched in April 2011.

Trauner says Microsoft is reacting to recent headlines about its phone and tablet divisions, yet neither of the pair is central to the company's core businesses. He also likes the fact that Microsoft recently raised its dividend.

Trauner is also positive about Hewlett Packard's (HPQ - Get Report) prospects, despite the company's well-documented management problems.

"You have a tremendous soap opera at the board level and yet people forget that they are number one in PCs and printers, as well as being huge in servers and services," says Trauner. "It's quite fascinating."

Trauner says GoodHaven took a position in HP during the company's latest management upheaval, when the stock was under the most pressure and headlines were at their most vicious. Even if HP earnings are disappointing in the coming quarter, he believes the stock offers more than 15% in upside from GoodHaven's purchase price.

Outside of large-cap tech, GoodHaven also owns consumer products company Spectrum Brands (SPB) which Trauner says is in the process of a well-orchestrated turnaround. Trauner contends that Spectrum, which makes George Foreman Grills and Remington Shavers, is repairing its balance sheet by paying down its debt, managing expenses and, most importantly, increasing sales.
Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HPQ $11.44 -1.30%
MSFT $49.94 0.14%
WAC $4.40 -6.20%
AAPL $93.21 -0.44%
FB $117.80 -0.22%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs