Hewlett-Packard Company (HPQ) was up 2% to $44.19 at the close of today's bell. Unfortunately, that wasn't too close to the 52-week high of $54.75. Then again, it was comfortably above the 52-week low of $37.32. And, volume was super-strong.
Alas, the chart doesn't look too appealing, does it? The equity seems to be in a downtrend, and while traders might be able to make some money, long-term believers had no choice but to consistently add on the dips to improve the cost basis.
Yesterday, the tech entity reported results for the fiscal fourth quarter after the regular session ended. Adjusted net income jumped 11% to $3.1 billion; on a per-share basis, that came out to $1.33, a figure that was six pennies better than the overall estimate.
That isn't bad. Plus, if you take a glance at the press release, you'll see that adjusted profit for the upcoming fiscal year is expected to fall between a range of $5.16 and $5.26 per share. If the bottom line does do that well, then the shares might be cheap.
I do have some concerns, however, about the technical aspects of this story. I just don't like the chart. I'm not inclined to buy right now at these price levels.
Still, that doesn't mean that my opinion won't change after I see how the action in the stock evolves over the next several sessions. The volume, as I stated earlier, is extremely impressive. Obviously there are a lot of participants out there who believe Hewlett-Packard should be bought. And considering the session we just had, the relatively small gain on the stock might be even more notable.
For now, though, I'm sticking to my reticence. I would do a bit more chart-watching on this one before committing capital.
Disclosure: I don't own any company mentioned; positions can change without notice.