Ditch Top Performer HPQ: ISI’s Marshall
Online Producer
Despite its top first-quarter stock performance, Hewlett-Packard's secular challenges loom large, ISI's Brian Marshall said Thursday on CNBC's "Fast Money."
"Can the company string together a good quarter or two? Sure," he said. "But at the end of the day, I mean, I think they've got a lot of wood to chop left. Clearly, they've got a lot of issues from a restructuring standpoint, so it just doesn't make sense right now to be long or short the name. I think you've got to watch from the sidelines."
Marshall called Hewlett-Packard's growth prospects "problematic."
"When you look at it, half of H-P's business today, about $60 billion, is both PCs as well as printing," he said.
"Those are two secularly challenged industries going forward, in our opinion. I think the fundamental trends speak for themselves, and the direction of that business is headed down."
Trader disclosure: On March 28, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Enis Taner is long GS; Enis Taner is long GS PUT SPREAD; Enis Taner is long BIDU CALL SPREAD; Enis Taner is long MSFT PUTS; Enis Taner is long YHOO CALL SPREAD; Enis Taner is long FXE PUTS; Enis Taner is long XLV; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long AGU; Guy Adami is long BTU; Brian Kelly is long TREASURIES; Brian Kelly is long GOLD; Brian Kelly is long SILVER; Brian Kelly is short S&P 500; Brian Kelly is short CAC; Brian Kelly is short DAX; Brian Kelly is short EURO; Brian Kelly is short EUROSTOXX; Tim Seymour is long AAPL; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long CSCO; Tim Seymour is long WMT; Tim Seymour is long SBUX; Tim Seymour is long CLF.
