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Hewlett-Packard: Value Trap or Bargain Stock?

Tuesday, 20 Nov 2012 | 12:24 PM ET

As Hewlett-Packard takes a massive write-down over its Autonomy acquisition, what's ahead for the stock?

On CNBC's "Fast Money," Saturna Capital's Paul Meeks called the hint of fraud by the British software company "very troubling."

But he stopped short of seeing a split-up of Hewlett-Packard as its best bet.

Hewlett-Packard: Value Trap or Buying Opportunity?
As Hewlett-Packard takes a massive write-down over its Autonomy acquisition, what's ahead for the stock? Saturna Capital's Paul Meeks and OptionMonster.com's Jon Najarian weigh in.

"I do think that companies that are buying tech gear would like to continue to have a dominant brand, a dominant one-stop shop," he said.

"In the long-term, I still think that these businesses can do OK together. Remember, the guidance of this company going forward is to grow even after the restructuring at a GDP to maybe a little bit better pace, so we're not baking in extraordinary top-line growth for the company."

In an interview with CNBC, CEO Meg Whitman stopped short of calling accounting irregularities with Autonomy fraud but said there was "a willful effort on the part of certain members of Autonomy management to mislead shareholders" as well as potential buyers.

(Read More: Autonomy Made 'Willful Effort to Mislead' HP: CEO Whitman)

OptionMonster.com's Jon Najarian said HP's stock price, once a value trap, was now tempting at its October 2002 lows.

Noting that the company posted revenues of $30 billion-plus, he added, "I can't believe that the company's just going away. It's certainly been mismanaged in the past. I think Meg's going to turn that around. And that's the temptation for me to get in."

Trader disclosure: On Nov. 20, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long AAPL; Jon Najarian is long FB; Jon Najarian is long GRG; Jon Najarian is long DSW; Jon Najarian is long WHR; Jon Najarian is long PHM; Jon Najarian is long ESV; Jon Najarian is long NBL; Jon Najarian is long MAS; Jon Najarian is short puts in GLD; Jon Najarian is short puts in AGQ; Jon Najarian is short puts in SLV; Jon Najarian is long GLUU; Jon Najarian is long STSI; Jon Najarian is long CME; Jon Najarian is long CBOE; Joe Terranova is long VRTS; Joe Terranova is long TJX; Joe Terranova is long AAPL; Joe Terranova is long SWN; Joe Terranova is long VZ; Joe Terranova is long GS; Joe Terranova is long XOM; Steve Weiss is long BAC; Steve Weiss is long C; Steve Weiss is long RIMM; Steve Weiss is long JPM; Steve Weiss is long QCOM; Steve Weiss is long SWKS; Steve Weiss is short RIO; Steve Weiss is short X; Steve Weiss is short VALE.

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