“HP, which announced a major restructuring including the sale of its PC business last Thursday (see Unable to Beat Apple, HP Takes on IBM With Major Restructuring Plan), has seen its valuation battered to the point where upset shareholders are talking it up as a break-up story or takeover target,” Michael Comeau writes for Minyanville.
“A similar game was played by Research In Motion (RIMM) bulls in late June,” Comeau writes. “So yes folks, HP has officially joined RIM in the largely mythological and mostly money-losing ‘this stock’s so cheap that it has to be a takeover target’ category.”
“That means it’s time to ask the big questions,” Comeau writes. “First we’ll have to put aside the absurdity of break-up rumors for a company that just announced it is breaking up. If a company is trying to sell a division that accounts for 31% of revenues and abandoning its mobile-device business, it’s breaking up.”
Much more in the full article here.