GO
Loading...

HP Won’t Move the Needle Until This Happens, Says Pro

On Tuesday pros were wondering if it was time to buy Hewlett Packard after RBC upgraded the stock.

Analyst Amit Daryanani boosted the stock to ‘Outperform’ and grew incrementally more positive on Hewlett after speaking with new CEO Meg Whitman.

Daryanani says the biggest thing he walked away with after the meeting was a belief that “Whitman isn’t looking to implement a transformation – in other words past aspirations to become a software company are no longer a goal.”

And he says, the path Whitman is taking – to leverage exiting product lines – is the right strategy to return Hewlett Packard to its glory days.

The argument is compelling but are the fundamentals shifting with enough heft that they’ll spark gains in the stock?

According to pro trader Joe Terranova, no. At least not, yet.

He doesn’t think the needle will move on this stock until “HP regains large cap passive investor – (the people that run pension funds.)

”That investor left when Mark Hurd left. They went to IBM,” Terranova explains.

”HP has to get that money back. Does that happen in the here and now? No. That doesn’t happen until later 2012 at the earliest,” he says.

Sounds like one for the radar.

*You can find our conversation with Amit Daryanani about 12 minutes into this video clip.


______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On November 29, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders;

JOE TERRANOVA
Long: SBUX, DECK, TRLG, LULU, CAT, CSCO, HES, SU, EMC, IBM, AXP, MUB, LQD

PATTY EDWARDS
Long for Clients: TGT, AAPL, CVX, PM, (Patty also personally owns), CBI

BRIAN KELLY
Fund is long: AAPL, DE, CAT, CLNE, GLNG, IBM, MSFT, PM, SNDK, SYY, BRENT OIL, COPPER, FCX, AUSSIE DOLLAR, CORN FUTURES
Fund is short: Japanese yen, EWO

STEVE CORTES
Long: XLE, S&P 500, Treasuries,
Short: XRT, QQQ, DB

DAN DICKER
Long: RIG

CAMILLA SUTTON
Scotia Capital
Firm makes market in Australian Dollar and Euro

MICHAEL PACHTER
Wedbush Securities
No disclosures

TAVIS MCCOURT
Morgan Keegan
No Disclosures


AMIT DARYANANI
Securities Recommended: Amphenol Corporation. Benchmark Electronics, Inc.. Celestica Inc.. Dell Inc.. EMC Corporation. Emulex Corporation. Flextronics International Ltd.. Hewlett-Packard Company. International Business Machines Corporation. Jabil Circuit, Inc.. Molex Incorporated. NetApp, Inc.. Plexus Corp.. QLogic Corporation. Sanmina-SCI Corporation. Seagate Technology. Sensata Technologies Holding N.V.. TE Connectivity Ltd.. Xyratex Group Limited.

Details / Comments: CNBC Business News
( internal identifier: 19308 )

Disclosures
Sensata Technologies Holding N.V.:
A member company of RBC Capital Markets or one of its affiliates managed or co-managed a public offering of securities for Sensata Technologies Holding N.V. in the past 12 months.

Sensata Technologies Holding N.V.:
A member company of RBC Capital Markets or one of its affiliates received compensation for investment banking services from Sensata Technologies Holding N.V. in the past 12 months.

Molex Incorporated:
Royal Bank of Canada, together with its affiliates, beneficially owns 1 percent or more of a class of common equity securities of Molex Incorporated.

Celestica Inc.:
RBC Capital Markets is currently providing Celestica Inc. with non-securities services.

Sensata Technologies Holding N.V.:
RBC Capital Markets is currently providing Sensata Technologies Holding N.V. with non-securities services.

International Business Machines Corporation:
RBC Capital Markets is currently providing International Business Machines Corporation with non-securities services.

Sensata Technologies Holding N.V.:
RBC Capital Markets has provided Sensata Technologies Holding N.V. with investment banking services in the past 12 months.

Dell Inc.:
RBC Capital Markets has provided Dell Inc. with non-investment banking securities-related services in the past 12 months.

Seagate Technology:
RBC Capital Markets has provided Seagate Technology with non-investment banking securities-related services in the past 12 months.

International Business Machines Corporation:
RBC Capital Markets has provided International Business Machines Corporation with non-investment banking securities-related services in the past 12 months.

Dell Inc.:
RBC Capital Markets has provided Dell Inc. with non-securities services in the past 12 months.

Celestica Inc.:
RBC Capital Markets has provided Celestica Inc. with non-securities services in the past 12 months.

Jabil Circuit, Inc.:
RBC Capital Markets has provided Jabil Circuit, Inc. with non-securities services in the past 12 months.

Sensata Technologies Holding N.V.:
RBC Capital Markets has provided Sensata Technologies Holding N.V. with non-securities services in the past 12 months.




CNBC.com with wires.

Symbol
Price
 
Change
%Change
HPQ
---

Featured

Contact Halftime Report

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET