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| The PC isn't going away any time soon |
On the surface, I think it is quite natural to feel grim about the company's prospects after such a dramatic loss. In my personal portfolio, if I had sold my shares before the earnings report, I would have realized a 12% gain, whereas now I am sitting on a 7% loss. So while emotionally I am obviously not happy with the turn of events, that should not impact the underlying analysis on which I base my trades.
In fact, it is precisely bear-ish sentiments like these that give investors arbitrage opportunities like this.
As such, I stick by original positive prospects for HP and would buy even more shares if I had the cash and sufficient diversification to do so. Here is why: