Why buy H.P even after its scandal?

H.P.'s ex-CEO Mark Kurd has already be fired from the company.




According to inside sources, Hurd cut the research and development budget, sowed mistrust and was actually destructive to H-P in the eyes of some company leaders.

Contrary to popular belief, Mark Kurd was not the primary force behind HP's success.

In fact, Cathie Lesjak, the chief financial officer turned interim CEO, is considered one of the best at lean-and-mean cost cutting and is a big reason Hewlett-Packard weathered the recession so well. She was, essentially, the force behind Hurd's success on the bottom line and for very respectable margins




Also, H-P has economies of scale to keep costs down. For three years in a row, H-P has been in first place globally for "information technology," including PCs, printers, computers servers and software. It is the largest tech company in the world by revenue.








The company has been buying storage and networking companies that allow it to attract business from clients with more complex IT needs.




H.P. is definitely moving in the right direction now.




Networking and data storage business is definitely the new "in" because of the uprising cloud computing business where people exchange data over a shared network instead of using their own private network now.

It is much more convenient to tap the plethora of information available everywhere these days. It facilitates the flow of information more smoothly and enable proper storage in their respective databases for future uses. Examples of uses will be for marketing purposes and the spotting of pivotal trends when it comes to the analysis of the multitude of psychological needs along with physiological needs.




Of course, companies like Dell and IBM have also noticed this salient trend and are, too, moving in at lightning speed. Everyone is making their respective investments in the small companies that they deemed are useful in this cloud computing age.




While everyone is still panicking amidst the confusion of Kurd's departure, it is definitely the apposite time to invest in HP considering that it is undervalued right now.




In the long run, it will definitely prove to be a worthy buy.






Credits -marketwatch, -topnews.in, -businessweek