Look for Hewlett-Packard to survive this elongated economic storm

Further, Hewlett-Packard (NYSE: HPQ) is projecting strong signals that it will weather the current economic doldrums fairly well. In general, analysts see HPQ gaining market share in PCs, servers, printers, and IT services, once the economic recovery starts. Demand for wireless portability is also helping notebook PC sales.

Meanwhile, HPQ has also improved cost controls. A September 2008 $8 billion addition to the company's share repurchase program adds to the positive story. The First Call F2009 / F2010 EPS estimates for HPQ are $3.70 / $4.01.

The risks? A later-than-expected U.S. economic recovery could put a damper on technology equipment spending, which would weigh on both F2009 and F2010 revenue. But overall, given the aforementioned positives, and an attractive p / e of 11, there's a strong case to add HPQ shares now, before institutional investors start getting bolder.

Stock Analysis: Hewlett-Packard is a moderate-risk stock. Consider buying a 25% position in HPQ now; then buy another 25% in three months, if U.S. and global economic conditions don't worsen substantially. Under any circumstance, don't buy more than 50% of your HPQ position in the first half of 2009. Sell / Stop Loss if you were to buy shares in this company: $18.

Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.