By Andrew Leckey

About Hewlett-Packard Co.

Ticker: HPQ

Exchange: NYSE

What does the company do? Makes and sells computer hardware and software

2009 Financial report:

Net sales: $114.6 billion

Net income: $7.66 billion

Q. I'm concerned about all the leadership drama at Hewlett-Packard Co. affecting my stock. What is your opinion of it?

A. More important than the drama is this computer giant's expansion into database and business application software to go along with its proven hardware business. It has a new CEO steeped in that software background.

In fine financial condition with plenty of cash and manageable debt,

But as you have pointed out, headlines surrounding its top executive position have overshadowed its business moves:

-- CEO Mark Hurd resigned under board pressure over fraudulent expense reports and his relationship with a female contractor who had filed a sexual harassment complaint.

-- Leo Apotheker, the former CEO of German software company SAP AG named to replace Hurd, has drawn scathing criticism from Larry Ellison of rival Oracle Corp. SAP must pay damages to Oracle for past illegal downloads of Oracle documents.

-- Hurd is now Oracle's co-president.

Consensus analyst recommendation on shares of

Earnings are expected to be up 17 percent for the 2010 fiscal year and 13 percent the following fiscal year, according to Thomson Reuters. The five-year annualized growth rate forecast is 10 percent versus 14 percent expected for the computer systems industry.

 

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Investing - Computer Giant HP Weathering the Drama | Successful Investing

© Andrew Leckey

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