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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

HP's Death Is Not Greatly Exaggerated

NEW YORK (TheStreet) --

When I sent Hewlett-Packard Needs to Stop Selling Computers over for publication last week, I thought I had just submitted the most straightforward, cogent and clear article of my career.

Financial media gold.

Based on a small, most likely non-representative cross-section of response, it appears I was wrong. A few tortured souls didn't understand what I was saying. It would have been fine to consider my opinions farcical and inaccurate, but to not even comprehend them is an entirely different matter.

A classic case of denial and psychological filtering -- pure rationalization.

The evidence is there. Investors, not to mention key executives at companies, could easily see for themselves the pending death at outfits such as Hewlett-Packard (HPQ). It's all about acknowledging, not distorting, present-day reality and stepping out of your comfort zone to objectively vision the future based on what we know about the past.

I explain the logic of the Kodak (KODK) to HP and Blackberry (BBRY) to HP comparisons in the video.

But there's another, even more compelling way to consider HP's situation and the response to it.

Often, when a consumer electronics company that also does enterprise business starts to decay before our eyes, ardent bulls of that company begin to shift focus off of the consumer failing, arguing that strength with corporate customers will keep said company alive.

It happened, memorably, with Blackberry. The artist formerly known as RIM's supporters touted the Blackberry security advantage with businesses. There was no way IT departments would let something like Apple's (AAPL) iOS in, no matter how badly employees demanded it through their words and actions.

It's happening now with Microsoft (MSFT). As it dies a painfully obvious death with the consumer, we're told by bulls there's no way Apple will overtake Microsoft in enterprise. I mean it costs too much money to unwind all of that Windows and Office infrastructure so it simply can't happen!

Do an intellectual dig into that common defense. You'll see just how sorry it is. It's not the merits of Microsoft products that will keep them running at businesses, it's simply because they're so unwieldy and weaved into an operation, it's apparently "impossible" to unwind the apparatus. They've been left behind in such entrenched fashion, they've become more of a headache you can't get rid of than an asset.

We can call this Bill Gates and Steve Ballmer executing the George Constanza business strategy:

HP bulls argue you don't understand the company's business if you claim it will die without massive change. Like BBRY and MSFT bulls, they point to enterprise services and solutions. But they miss two important points.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,083.80 -2.83 -0.02%
S&P 500 1,987.98 +0.97 0.05%
NASDAQ 4,472.1080 -1.5890 -0.04%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs