
The Tech Hiding Place: Hewlett-Packard
When people focus on tech, they always come back to the big Nasdaq names: Dell (DELL) - Get Dell Technologies Inc. Class C Report, Intel (INTC) - Get Intel Corporation Report, Microsoft (MSFT) - Get Microsoft Corporation Report and Oracle (ORCL) - Get Oracle Corporation Report
They also have a couple of
NYSE
names,
EMC
(EMC)
being the most visible but also
IBM
(IBM) - Get International Business Machines Corporation Report
.
Why don't they focus on
Hewlett-Packard
? Most tech stocks are well off their highs because of product concerns revolving around the so-called "nothing new" drives (thanks, Vista) or because of overvaluation.
Consider, though, if you will, the case of Hewlett-Packard:
TheStreet Recommends
It trades at 13 times earnings with a forward price-to-earnings ratio of 15.
It's a big beneficiary of the semiconductor wars.
It has an unassailable printing and photography business when it comes to digital -- ask Kodak!
Great leadership in the form of Mark Hurd, an inspiring boss who has turned the company around.
I believe that this stock is so close to its highs for all of the reasons above. I suspect that it can go higher without any problem, simply because the valuation is so darned cheap.
This is a stock that has not been pulled down by all the bad news in tech. It is the No. 1 name to go to for hardware.
It is also an excellent place to hide for those who want tech.
At the time of publication, Cramer was long Microsoft.
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